Monday, September 10, 2012

NewBuy Scheme progresses slowly

NewBuy 'gaining momentum' as it hits 1,300 deals

"The Home Builders Federation says the Government’s NewBuy scheme is”gaining momentum” as it hit 1,300 reservations since its launch six months ago. The take-up rate has increased slightly since the 600 reservations made for the first three months of the scheme".

Posted by alan @ 12:44 PM (1354 views)
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2 thoughts on “NewBuy Scheme progresses slowly

  • Awesome, this is considerably “better” than all Labour’s schemes, which had take-up rates of dozens. With 200 new victims a month, it will only take five or six centuries to get owner-occupier levels back to where they were eight years ago.

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  • According to my sums to buy a £150k NewBuy property you will need a 5% (£7.5k deposit) and over 30 yrs at 4.49% with Natwest (indicative fix) this will cost you £705 pcm. However, Natwest do a FTB 90% mortgage at 4.79% and assuming New Buy inflates prices by a minimum of 10% (otherwise why would you need NewBuy to sell houses?) you will need another £6k deposit however, your repayments at this higher rate will be £637 pcm. I can imagine that in order to avoid saving £6k, getting on the laddr sooner and getting a cheaper rate some FTB’s might think this is a good deal, however over the life of the mortgage Newbuy works out to be £19k more expensive before you factor in that your house 2nd hand maybe immediately worth 10% less as future FTB’s won’t be able to buy via newbuy.

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