Monkey Posted March 20, 2013 Posted March 20, 2013 (edited) As per our new wonderful scheme in Today budget, i thought it was time we had a concise thread that listed all the Government props to the UK Housing market. ive included the "official" website and over view of each scheme. if I've missed any (i am sure i have) please post up This is for direct schemes only, and not indirect stuff like keeping IR low or QE. Yes they are used to keep house prices from falling, but they are not setup schemes for the purpose. Support for Mortgage Interest https://www.gov.uk/support-for-mortgage-interest/overview If you qualify for Support for Mortgage Interest (SMI), you’ll get help paying the interest on up to £200,000 of your loan or mortgage. If you’re getting Pension Credit, this figure is £100,000. New Buy http://www.newbuy.org.uk/ The NewBuy Guarantee scheme aims to help buyers who have a deposit of at least 5% to buy a new-build home. This is a smaller deposit than is normally required. The scheme allows more borrowers to secure up to a 95% loan-to-value mortgage on new-build properties (houses and flats) from participating builders in England Funding for Lending http://www.bankofengland.co.uk/publications/Pages/news/2012/067.aspx hat increase lending to UK households and businesses will be able to borrow more in the FLS, and do so at lower cost than those that scale back lending. Help to Buy http://www.hm-treasury.gov.uk/10012.htm Help to Buy is made up of two schemes – “equity loan” where the Government will loan you up to 20% of the value of your new build home and “mortgage guarantee” where lenders will be incentivised to make more mortgages available for people with small deposits. First Buy http://www.firstbuyscheme.org.uk/ The FirstBuy scheme gives you the chance to buy a new home with the assistance of an equity loan. The value of the loan is a maximum of 20% of the full price of the property. the maximum full purchase price is set at £280,000 Local Authority Mortgage Scheme (LAMS) - each Local Authority has its own page, if they offer this http://www.sector-group.com/our-services-local-authority-mortgage-scheme.htm The initiative sees local authorities acting as guarantors for first time buyers, to bridge the gap in interest rates between the cost of a typical 75% and 95% loan to value mortgage offered by banks and other lenders. Edited March 20, 2013 by Monkey Quote
Reck B Posted March 20, 2013 Posted March 20, 2013 As per our new wonderful scheme in Today budget, i thought it was time we had a concise thread that listed all the Government props to the UK Housing market. ive included the "official" website and over view of each scheme. if I've missed any (i am sure i have) please post up This is for direct schemes only, and not indirect stuff like keeping IR low or QE. Yes they are used to keep house prices from falling, but they are not setup schemes for the purpose. Support for Mortgage Interest https://www.gov.uk/support-for-mortgage-interest/overview New Buy http://www.newbuy.org.uk/ Funding for Lending http://www.bankofengland.co.uk/publications/Pages/news/2012/067.aspx Help to Buy http://www.hm-treasury.gov.uk/10012.htm Great minds ! just resurrected a post from last year about the same subject. http://www.housepricecrash.co.uk/forum/index.php?showtopic=183637&hl= artificial props&st=0 Quote
cashinmattress Posted March 20, 2013 Posted March 20, 2013 (edited) -> Sustain house prices with scheme... I think not. Lending in 2012 was still less than half of the pre-peak lending. The greater economic situation in the UK has not improved since 2006/7. Until you can match the sheer number of transactions pre-bust, Gidiots interest free loan will hardly make a dent. Edited March 20, 2013 by cashinmattress Quote
papag Posted March 20, 2013 Posted March 20, 2013 (edited) The new scheme is just another Sub prime offering this time backed up by us the tax payer, Unfxxcxing believable :angry: Edited March 20, 2013 by papag Quote
cashinmattress Posted March 20, 2013 Posted March 20, 2013 The new scheme is just another Sub prime offering this time backed up by us the tax payer, Unfxxcxing believable :angry: I dunno. The 'free' deposit must be repaid, and its only issued for a repayment mortgage. A whole heap of people simply cant move into a bigger house and afford it without IO terms. Tempest in a teacup. Quote
long time lurking Posted March 20, 2013 Posted March 20, 2013 As per our new wonderful scheme in Today budget, i thought it was time we had a concise thread that listed all the Government props to the UK Housing market. ive included the "official" website and over view of each scheme. if I've missed any (i am sure i have) please post up This is for direct schemes only, and not indirect stuff like keeping IR low or QE. Yes they are used to keep house prices from falling, but they are not setup schemes for the purpose. Support for Mortgage Interest https://www.gov.uk/support-for-mortgage-interest/overview New Buy http://www.newbuy.org.uk/ Funding for Lending http://www.bankofengland.co.uk/publications/Pages/news/2012/067.aspx Help to Buy http://www.hm-treasury.gov.uk/10012.htm Same old crap borrow more money than you can afford, can`t see the partying like 2005 returning as they are running out of greater fools and thereis to much debt aversion out there now IMO 0.5% IR is doing most of the damage concerning debt aversion as everyone knows realistically they can only go up ,when you look at the rates for high LTV mortgages now with the BOE base rate at 0.5% you can see why they are scared Quote
Monkey Posted March 20, 2013 Author Posted March 20, 2013 Great minds ! just resurrected a post from last year about the same subject. http://www.housepricecrash.co.uk/forum/index.php?showtopic=183637&hl= artificial props&st=0 Yeah saw that after i created this post. LOL Quote
Monkey Posted March 20, 2013 Author Posted March 20, 2013 Are QE and ZIRP schemes? not direct shcemes thought like the ones in the OP. Quote
plummet expert Posted March 20, 2013 Posted March 20, 2013 As per our new wonderful scheme in Today budget, i thought it was time we had a concise thread that listed all the Government props to the UK Housing market. ive included the "official" website and over view of each scheme. if I've missed any (i am sure i have) please post up This is for direct schemes only, and not indirect stuff like keeping IR low or QE. Yes they are used to keep house prices from falling, but they are not setup schemes for the purpose. Support for Mortgage Interest https://www.gov.uk/support-for-mortgage-interest/overview New Buy http://www.newbuy.org.uk/ Funding for Lending http://www.bankofengland.co.uk/publications/Pages/news/2012/067.aspx Help to Buy http://www.hm-treasury.gov.uk/10012.htm First Buy http://www.firstbuyscheme.org.uk/ Local Authority Mortgage Scheme (LAMS) - each Local Authority has its own page, if they offer this http://www.sector-group.com/our-services-local-authority-mortgage-scheme.htm Osborne is a subprime junky on crack! He has no understanding of markets or necessary corrections or malinvestment or competitiveness. In fact it's a wonder he is actually Tory!!!! He does not belive in the free market as afar asa finance is concerned. Whilst it may need many things, one thing it does not need is further distortion. The Budget was vacuous and aimless. There is no coherent strategy. The only thing that has been going along is reducing public sector employees - that's quite right. But the tendency is for low paid part time jobs in their place. Still little in the way of increased manufacturing and exporting Quote
200p Posted March 20, 2013 Posted March 20, 2013 More good money after bad. Can't they pick another asset class to "Boost". What about propping up energy prices? Those poor petrol stations need more money. Get the economy moving again with more money going to the oil companies. Quote
DebtFree2011 Posted March 20, 2013 Posted March 20, 2013 (edited) The UK no longer has a sustainable or productive economy ... and it's been like that for many years. All this country can do is inflate house prices to make up for its MASSIVE shortcomings. DEBT and fraud in the financial services sector are all this country has now! When the shit eventually hits the fan it will wipe this country out ... "'property owning democracy" ???? .. I don't see democracy at work? Politicians, banks, and home-debtors (... ahem ... Home owners) are happy to shaft savers for their own personal gain. They won't be using my savings for much longer ..... screw 'em ...... I will transfer my savings out of this country ... Edited March 20, 2013 by DebtFree2011 Quote
DebtFree2011 Posted March 20, 2013 Posted March 20, 2013 Disgusting. The UK has nothing more left ... all it can do is inflate its asset prices to keep the masses happy ... and give them access to sub prime .... Quote
RufflesTheGuineaPig Posted March 20, 2013 Posted March 20, 2013 I don't get it... Why would any bank offer you a mortgage with "help to buy"... It's simply giving someone else first charge on the property? Surely this increases the risk for the bank? Quote
OnlyMe Posted March 20, 2013 Posted March 20, 2013 I don't get it... Why would any bank offer you a mortgage with "help to buy"... It's simply giving someone else first charge on the property? Surely this increases the risk for the bank? Not if they could push somebody else's head under the bus first before their's. That is what they did with the whole economy. Quote
thecrashingisles Posted March 20, 2013 Posted March 20, 2013 I don't get it... Why would any bank offer you a mortgage with "help to buy"... It's simply giving someone else first charge on the property? Surely this increases the risk for the bank? Maybe that's why they need a 'guarantee' from the government. Either way, the taxpayer is the one on the hook. Quote
mikthe20 Posted March 20, 2013 Posted March 20, 2013 Maybe that's why they need a 'guarantee' from the government. Either way, the taxpayer is the one on the hook. Exactly - basically house prices would have to fall 25% (20% government guarantee + 5% deposit) before the bank would suffer if it repossessed. (In fact, considering mortgage payments in early years are almost pure interest, then it's actually a fair bit more than 25%). Ergo, banks will be keener to lend loosely as they're well-protected from a HPC by the taxpayer. Quote
long time lurking Posted March 20, 2013 Posted March 20, 2013 I don't get it... Why would any bank offer you a mortgage with "help to buy"... It's simply giving someone else first charge on the property? Surely this increases the risk for the bank? Good point pity the PTB did not work that out It would be interesting what the criteria for the 20% loan from the government is Quote
AvoidDebt Posted March 20, 2013 Posted March 20, 2013 If they could stretch the interest free loan to the full 25 year term then they would become the first government in the world to implement a 100% Shariah compliant system They are already more Islamic than all other shariah based mortgages. Quote
okaycuckoo Posted March 20, 2013 Posted March 20, 2013 If they could stretch the interest free loan to the full 25 year term then they would become the first government in the world to implement a 100% Shariah compliant system They are already more Islamic than all other shariah based mortgages. I know your point is rhetorical, but I'd love to confront my Tory buddies with the facts and figures to back that up. They still think they're conservatives and not radicals. Any links? Quote
AvoidDebt Posted March 20, 2013 Posted March 20, 2013 From what I understand current Islamic mortgages work along similar principles where you go into a joint equity scheme with the bank. You buy 10% of the house and the bank buys 90% of the house. You then pay rent on the 90% of the house that you do not own plus a little extra to buy back the banks share and reducing your rental payments in the process. At the end you make a final payment to buy back the banks remaining share or sell and pay back capital. Gordon Brown introduced changes to facilitate this so people who had these mortgages didn't have to pay stamp duty twice. Some Islamic scholars accept this and others have said no as the rental portion is just interest re-branded and financial and religious wizardry. Many religious Muslims refuse to buy for this reason and never own property as they believe both conventional and 'Islamic' mortgages are wrong. Others get sucked into these Islamic schemes and others just don't care. I believe HelpBuy would be termed as more Islamic than all these products as it's interest free however the high price of property would force you to mix it up with a non-Islamic product. Anyway my point stands the interest free, shared equity nature is in the right direction. You could say this was a budget for drinkers, motorists, homeowners and religious Muslims. Quote
badsector Posted March 21, 2013 Posted March 21, 2013 Well this only appears to help the banks and builders. I really can't understand it. It isn't going to help home buyers. In my area this will no doubt push up the cost of new builds by 20% which will mean that you need to take the 20% loan to even afford what you previously could. Madness. Quote
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