henry the king Posted October 1, 2023 Share Posted October 1, 2023 Thousands of homeowners in arrears after purchasing their homes through the scheme https://www.telegraph.co.uk/money/property/first-time-buyers-forced-sell-up-unaffordable-help-to-buy/ HTB isn't coming back Quote Link to comment Share on other sites More sharing options...
Huggy Posted October 1, 2023 Share Posted October 1, 2023 Some kind of tribal dance praying to the bailout god is in order I think? Incidentally, that article has a ratio of 162.8 of correctly used words versus the word home"owner". I think I might be highlighting that error a lot more as the bear food comes rolling in. Quote Link to comment Share on other sites More sharing options...
Blobsy Posted October 1, 2023 Share Posted October 1, 2023 23 minutes ago, henry the king said: Thousands of homeowners in arrears after purchasing their homes through the scheme https://www.telegraph.co.uk/money/property/first-time-buyers-forced-sell-up-unaffordable-help-to-buy/ HTB isn't coming back So it has ended up as many on here said it would. Quote Link to comment Share on other sites More sharing options...
henry the king Posted October 1, 2023 Author Share Posted October 1, 2023 30 minutes ago, Huggy said: Some kind of tribal dance praying to the bailout god is in order I think? Incidentally, that article has a ratio of 162.8 of correctly used words versus the word home"owner". I think I might be highlighting that error a lot more as the bear food comes rolling in. Don't think so tbh. HTB isn't coming back Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted October 1, 2023 Share Posted October 1, 2023 It was only a matter of time. Quote Link to comment Share on other sites More sharing options...
hotblack42 Posted October 1, 2023 Share Posted October 1, 2023 (edited) A friend who works for a waste disposal firm that pays good, but not great, money told me yesterday that some younger colleagues have downsized as their 2nd step having previously used an FTB 'scheme'. 1. Never heard if this before despite a huge amount of time reading about property over many years. Don't recall this in 89-92. 2. This is a huge red flag. A sign of a mangled housing market. 3. What does this do to a young person's mental health? Edited October 1, 2023 by hotblack42 Clarify Quote Link to comment Share on other sites More sharing options...
Armus Posted October 1, 2023 Share Posted October 1, 2023 https://archive.ph/Izwr0 If only someone could have seen this coming. Alas, it was impossible. Quote Link to comment Share on other sites More sharing options...
Frankie Teardrop Posted October 1, 2023 Share Posted October 1, 2023 Quote Link to comment Share on other sites More sharing options...
NoHPCinTheUK Posted October 1, 2023 Share Posted October 1, 2023 Those who bought in Z3 are still doing fine. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted October 1, 2023 Share Posted October 1, 2023 5 minutes ago, NoHPCinTheUK said: Those who bought in Z3 are still doing fine. Really? For how long? Quote Link to comment Share on other sites More sharing options...
andrewwk Posted October 1, 2023 Share Posted October 1, 2023 9 minutes ago, Bruce Banner said: Really? For how long? whoosh Quote Link to comment Share on other sites More sharing options...
Si1 Posted October 1, 2023 Share Posted October 1, 2023 Quote Link to comment Share on other sites More sharing options...
henry the king Posted October 1, 2023 Author Share Posted October 1, 2023 2 hours ago, hotblack42 said: A friend who works for a waste disposal firm that pays good, but not great, money told me yesterday that some younger colleagues have downsized as their 2nd step having previously used an FTB 'scheme'. 1. Never heard if this before despite a huge amount of time reading about property over many years. Don't recall this in 89-92. 2. This is a huge red flag. A sign of a mangled housing market. 3. What does this do to a young person's mental health? Yeh it really is remarkable how people are downsizing as they enter their 40s and things. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted October 1, 2023 Share Posted October 1, 2023 Everyone should downsize eventually, it’s a matter of when. I’ve downsized already after realising years ago you don’t need what you aspire to as you’re in your 30’s and 40’s. Time and security becomes more important. However, if some people are downsizing in their 40’s and others can’t afford to even ‘get on the ladder’ until their late 30’s or even early 40’s, it’s a sorry sorry situation which will end in collapse I suspect. Quote Link to comment Share on other sites More sharing options...
dryrot Posted October 1, 2023 Share Posted October 1, 2023 Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 1, 2023 Share Posted October 1, 2023 And just who are these FTBs off-loading their HTB liabilities to? Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted October 1, 2023 Share Posted October 1, 2023 Help to Buy identified as (what it really was) Help to Sell in black and white text for all to read: Quote [Kylie-Ann Gatecliffe] said: “Because they’re working alongside the builder their intention was obviously to try and help them sell as many properties as possible. In a lot of these cases it was very much advice given to try and get the sale rather than giving the client a really balanced view of Help to Buy with all the risks involved.” Help to Buy my arse. Quote Link to comment Share on other sites More sharing options...
Orb Posted October 1, 2023 Share Posted October 1, 2023 36 minutes ago, bomberbrown said: And just who are these FTBs off-loading their HTB liabilities to? Greater fools would be my guess. https://en.wikipedia.org/wiki/Greater_fool_theory Quote Link to comment Share on other sites More sharing options...
markyh Posted October 1, 2023 Share Posted October 1, 2023 43 minutes ago, Aidan Ap Word said: Help to Buy identified as (what it really was) Help to Sell in black and white text for all to read: Help to Buy my arse. I caught up with a ex-colleague a few weeks back, who was stuck with 2 small kids in a 2 bed semi FTB house back in 2013. I introduced him to HTB and him and his family got in early before they started ripping people off and used it to make two hops up the ladder to a big 4 bed detached in 2018. He thanked me for my advice as at the time their mindset was they could never afford the next step up the ladder. He said they lad took a remortgage for the 20% equity loan in late 2022 and managed to fix for 5 years at a rate under 3%. If you got into HTB early with a plan to buy out the 20% when the 5 years were it did make a huge difference to outcome. Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted October 1, 2023 Share Posted October 1, 2023 2 hours ago, markyh said: I caught up with a ex-colleague a few weeks back, who was stuck with 2 small kids in a 2 bed semi FTB house back in 2013. I introduced him to HTB and him and his family got in early before they started ripping people off and used it to make two hops up the ladder to a big 4 bed detached in 2018. He thanked me for my advice as at the time their mindset was they could never afford the next step up the ladder. He said they lad took a remortgage for the 20% equity loan in late 2022 and managed to fix for 5 years at a rate under 3%. If you got into HTB early with a plan to buy out the 20% when the 5 years were it did make a huge difference to outcome. Yes. I too used HTB for the period 2015 to (circa) 2021 so I am fortunate to have got in and back out again before interest rates rose and the crash began. But a very significant proportuion of the HTB-users (used?) have not been so lucky with their timing! Looks like nearly half of the take up is from 2020 onwards ... Quote Link to comment Share on other sites More sharing options...
henry the king Posted October 1, 2023 Author Share Posted October 1, 2023 (edited) 41 minutes ago, Aidan Ap Word said: Yes. I too used HTB for the period 2015 to (circa) 2021 so I am fortunate to have got in and back out again before interest rates rose and the crash began. But a very significant proportuion of the HTB-users (used?) have not been so lucky with their timing! Looks like nearly half of the take up is from 2020 onwards ... A better graph would be HTB loans as a percent of house sales. A lot of house were being sold in 2021 so of course a lot of HTB loans. Either way, the removal of HTB is going to be a long term drag on house prices. Edited October 1, 2023 by henry the king Quote Link to comment Share on other sites More sharing options...
coypondboy Posted October 1, 2023 Share Posted October 1, 2023 (edited) 2 hours ago, henry the king said: A better graph would be HTB loans as a percent of house sales. A lot of house were being sold in 2021 so of course a lot of HTB loans. Either way, the removal of HTB is going to be a long term drag on house prices. If you bought a flat in most city centres using htb from 2015 onwards will not have been a great investment with many in negative equity or no profit will struggle to move up the ladder as the price of these flats will continue to fall until all the fire safety issues fixed. Just one example in tower hamlets block allowing shared ownership and help to buy price likely to have fallen another 5-10% in past 18 mths so expect sale price to be below 590k Edited October 1, 2023 by coypondboy Quote Link to comment Share on other sites More sharing options...
Aidan Ap Word Posted October 1, 2023 Share Posted October 1, 2023 3 hours ago, henry the king said: Either way, the removal of HTB is going to be a long term drag on house prices. Yes, and those who couldn't "staircase" the loan are going to face even more headwinds to their finances if they have to move ... Quote Link to comment Share on other sites More sharing options...
nero120 Posted October 2, 2023 Share Posted October 2, 2023 14 hours ago, markyh said: I caught up with a ex-colleague a few weeks back, who was stuck with 2 small kids in a 2 bed semi FTB house back in 2013. I introduced him to HTB and him and his family got in early before they started ripping people off and used it to make two hops up the ladder to a big 4 bed detached in 2018. He thanked me for my advice as at the time their mindset was they could never afford the next step up the ladder. He said they lad took a remortgage for the 20% equity loan in late 2022 and managed to fix for 5 years at a rate under 3%. If you got into HTB early with a plan to buy out the 20% when the 5 years were it did make a huge difference to outcome. Lucky. But then again, watching the market crash around you when you've bought a big detached 4 bed at the top of the market could be fairly soul destroying. And then there's the countdown to the fix expiring and having to re-mortgage at a much higher rate. I hope for their sake they use the time wisely and pay that mortgage down as much as humanly possible in the next 4 years... Quote Link to comment Share on other sites More sharing options...
markyh Posted October 2, 2023 Share Posted October 2, 2023 1 hour ago, nero120 said: Lucky. But then again, watching the market crash around you when you've bought a big detached 4 bed at the top of the market could be fairly soul destroying. And then there's the countdown to the fix expiring and having to re-mortgage at a much higher rate. I hope for their sake they use the time wisely and pay that mortgage down as much as humanly possible in the next 4 years... They bought in 2018, in then S/E. They would have seen at least 20% HPI banked in the property the last 5 years. Quote Link to comment Share on other sites More sharing options...
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