HovelinHove Posted June 26, 2020 Share Posted June 26, 2020 Not sure if this has been started in another topic, but I received an email today from rightmove partners, Bellway homes, saying that HTB will be extended to existing home owners, not just FTB until March 2021. Provided the borrower can stump up 5%, the government will provide 20% of the deposit for a 75% LTV loan. This obviously has quite big implications, and not all bad in my view. It will mean that existing home owners of flats, semis and terraces wanting to move up will accept lower offers so they can buy a rubbish new build. This will have a negative effect on prices on older homes, but mean that new builds will hold their price...I hate new builds, so doesn’t bother me. I suspect Sunak might stop Stamp duty till next April as well, maybe on houses under 500k, to also get the market moving. Quote Help to Buy is due to change Both existing homeowners and first time buyers can use Help to Buy until March 2021 with just 5% deposit From April 2021, Help to Buy will only be available for first time buyers New regional price caps will restrict the value of the home you can buy Quote Link to comment Share on other sites More sharing options...
Warlord Posted June 26, 2020 Share Posted June 26, 2020 Many of us predicted this... HTB has cost £10 billion+ so far .. I believe. We the taxpayer are being screwed yet again. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted June 26, 2020 Author Share Posted June 26, 2020 8 minutes ago, Warlord said: Many of us predicted this... HTB has cost £10 billion+ so far .. I believe. We the taxpayer are being screwed yet again. Has it cost 10 billion, or is that the amount of outstanding loans? What interests me is what happens with HTB defaults, presumably the government is on the tab for any 20% loss, but do they chase up the defaulting ex-home owner. Quote Link to comment Share on other sites More sharing options...
Trump Invective Posted June 26, 2020 Share Posted June 26, 2020 I think this is already the case? with the equity loan scheme I mean Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted June 26, 2020 Author Share Posted June 26, 2020 I wonder if the price caps will reduce the current ceiling on rubbish new builds, Quote Link to comment Share on other sites More sharing options...
blackhole Posted June 26, 2020 Share Posted June 26, 2020 It's quite a small concession for an extension, mind. As said by OP there's actually quite a bit of positives in this - removes buyers with small deposits attracted to new builds. Less competition. Quote Link to comment Share on other sites More sharing options...
Warlord Posted June 26, 2020 Share Posted June 26, 2020 1 minute ago, HovelinHove said: Has it cost 10 billion, or is that the amount of outstanding loans? What interests me is what happens with HTB defaults, presumably the government is on the tab for any 20% loss, but do they chase up the defaulting ex-home owner. Just the loans I believe but we're on the hook for it! Quote Just 24 hours after Persimmon revealed half of its homes were funded by Helped to Buy, HM Treasury has revealed that nearly 500,000 homes have been purchased via the scheme since it started in 2013 and that £10.7 billion has been spent on equity loans for the scheme by the government. https://thenegotiator.co.uk/help-to-buy-ten-billion-spending/ Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 26, 2020 Share Posted June 26, 2020 48 minutes ago, HovelinHove said: Not sure if this has been started in another topic, but I received an email today from rightmove partners, Bellway homes, saying that HTB will be extended to existing home owners, not just FTB until March 2021. Provided the borrower can stump up 5%, the government will provide 20% of the deposit for a 75% LTV loan. This obviously has quite big implications, and not all bad in my view. It will mean that existing home owners of flats, semis and terraces wanting to move up will accept lower offers so they can buy a rubbish new build. This will have a negative effect on prices on older homes, but mean that new builds will hold their price...I hate new builds, so doesn’t bother me. I suspect Sunak might stop Stamp duty till next April as well, maybe on houses under 500k, to also get the market moving. You have got to be f**king kidding me. Sunak should be jailed. If the young dont tell these thieves to F**K off they are making a noose for their own necks Quote Link to comment Share on other sites More sharing options...
Wayward Posted June 26, 2020 Share Posted June 26, 2020 When was this news released..I can't see evidence of this in house builder share price movements? Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted June 26, 2020 Author Share Posted June 26, 2020 17 minutes ago, Wayward said: When was this news released..I can't see evidence of this in house builder share price movements? I got an email Yesterday evening from rightmove sponsored by Bellway builders. It says HTB is about to change, then has that graphic in my original post. Maybe they are jumping the gun before it is officially announced. I kind of get it and if It helps precipitate a 10-20% drop, which I think it will, then bring it on. This won’t help the second hand home market and if anything will make it worse as two people trying to sell a flat at 250k on the same street...one is wanting to buy a 400k detached which is second hand, they can only get an 80% LTV loan, but only have 20% if they sell their flat for 250k...they will not budge on price. The other flat owner with the same finances now can drop their price significantly and still qualify for HTB as they only need 5%. Yes, this will prop up the evil builders (not a bad thing, they can build more, increasing supply), but this will really make it hard for second hand home owners competing with new builds. Quote Link to comment Share on other sites More sharing options...
Simhadri Posted June 26, 2020 Share Posted June 26, 2020 House prices will jump again. Its all 2013 again. ? Happy buyers and happy investors. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted June 26, 2020 Author Share Posted June 26, 2020 Hang on...am I being dumb...is HTB already open to existing home owners? The changes they describe are an extension only for FTBs from April 2021. Quote Link to comment Share on other sites More sharing options...
Deckard Posted June 26, 2020 Share Posted June 26, 2020 2 minutes ago, Simhadri said: House prices will jump again. Its all 2013 again. ? Happy buyers and happy investors. One for posterity, methinks. Quote Link to comment Share on other sites More sharing options...
Gush Posted June 26, 2020 Share Posted June 26, 2020 9 minutes ago, HovelinHove said: Hang on...am I being dumb...is HTB already open to existing home owners? The changes they describe are an extension only for FTBs from April 2021. correct. The scheme was always there for new build (irrespective of who buys it). The change is to restrict to FTB and put a ceiling on price based on region. Essex for example is moving from 600k to 410k. Quote Link to comment Share on other sites More sharing options...
sammersmith Posted June 26, 2020 Share Posted June 26, 2020 2 minutes ago, Gush said: correct. The scheme was always there for new build (irrespective of who buys it). The change is to restrict to FTB and put a ceiling on price based on region. Essex for example is moving from 600k to 410k. True, but Scotland has already extended HTB for another year to existing home owners so I’m pretty sure it’ll be a uk-wide ‘budget giveaway for hardworking families’ in November. I too am not really fussed about this. Let them have the new builds as I’ve got no interest in them. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 26, 2020 Share Posted June 26, 2020 (edited) 59 minutes ago, TheCountOfNowhere said: You have got to be f**king kidding me. Sunak should be jailed. If the young dont tell these thieves to F**K off they are making a noose for their own necks He seems to be very popular, although I can't think why. All smiles, no substance and slippery as an eel. I Identified him as such when he first rose from the ranks to become Chief Secretary to the Treasury. Don't forget that he only got the job because Javid resigned rather than come under the direct control of Cummings and his No 10 "advisers". Edited June 26, 2020 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
dugsbody Posted June 26, 2020 Share Posted June 26, 2020 54 minutes ago, TheCountOfNowhere said: You have got to be f**king kidding me. Sunak should be jailed. If the young dont tell these thieves to F**K off they are making a noose for their own necks The young don't vote, never really have. And those that do, don't vote for these thieves. Quote Link to comment Share on other sites More sharing options...
dugsbody Posted June 26, 2020 Share Posted June 26, 2020 Just now, Bruce Banner said: He seems to be very popular, although I can't think why. All smiles, no substance and slippery as an eel. I Identified him as such when he first rose from the ranks to become Chief Secretary to the Treasury. I thought he was ok at first and willing to give him the benefit of the doubt but I'm starting to think I was wrong. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 26, 2020 Share Posted June 26, 2020 This just sounds like promotion of the existing situation, nothing changed here, just trying to drum up business. Quote Link to comment Share on other sites More sharing options...
Wayward Posted June 26, 2020 Share Posted June 26, 2020 24 minutes ago, HovelinHove said: Hang on...am I being dumb...is HTB already open to existing home owners? The changes they describe are an extension only for FTBs from April 2021. That's how I read it...they are changing the logo it appears to include a little '1st'..so from spring next year I will be competing with more existing owners...but do many existing owners use HTB? Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 26, 2020 Share Posted June 26, 2020 (edited) 27 minutes ago, Wayward said: That's how I read it...they are changing the logo it appears to include a little '1st'..so from spring next year I will be competing with more existing owners...but do many existing owners use HTB? Existing home owners already use HTB. From April next year they won't be able to. I don't think this is new news, unless your concern is that existing owners will now be competing on the resale market. Edited June 26, 2020 by Si1 Quote Link to comment Share on other sites More sharing options...
Bluestone59 Posted June 26, 2020 Share Posted June 26, 2020 33 minutes ago, Bruce Banner said: He seems to be very popular, although I can't think why. All smiles, no substance and slippery as an eel. I Identified him as such when he first rose from the ranks to become Chief Secretary to the Treasury. Don't forget that he only got the job because Javid resigned rather than come under the direct control of Cummings and his No 10 "advisers". At last. Someone else who thinks what I do. And Count of Nowhere. Apologies to anyone else I can't think of who agrees. Fair play to you for sussing him well before I did. I M O this bloke is beginning to look like the worst of the worst. Fortunately he may still be sunk by the sheer scale of the problems he faces. Quote Link to comment Share on other sites More sharing options...
Warlord Posted June 26, 2020 Share Posted June 26, 2020 The chancellor is just another big spending politician in the mould of Blair/Brown/Cameron etc. If he had anything about him he would tell the truth about the dire situation and cut spending but he wont ... ask yourself why! Quote Link to comment Share on other sites More sharing options...
Warlord Posted June 26, 2020 Share Posted June 26, 2020 (edited) So why won't the chancellor tell the truth about the dire situation? Why won't he cut spending and balance the budget ? He is captured by special interests, the civil service and tory Party donors who do very well out of the status quo. This is the only explanation . He is a liar and a fraud. Don't look to him for salvation. Edited June 26, 2020 by Warlord Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted June 26, 2020 Share Posted June 26, 2020 4 minutes ago, Warlord said: So why won't the chancellor tell the truth about the dire situation? Why won't he cut spending and balance the budget ? He is captured by special interests, the civil service and tory Party donors who do very well out of the status quo. This is the only explanation . He is a liar and a fraud. Don't look to him for salvation. His billionaire father in law may have some influence too? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.