Wednesday, July 16, 2014

Taxpayer moneygrab

Help to Buy scheme runs out of money in Scotland

The Scottish government's Help to Buy scheme has run out of money for this financial year - only three months after a new round started. All the funds allocated for the central area of Scotland has now been allocated. Anyone hoping to get a Help to Buy there before next April will now have to find the extra money elsewhere or let their house deal fall through. £140 million was allocated for the 2014/14 round of the scheme, which allows homebuyers to purchase new-build properties with as little as 5% deposit, with the Scottish government taking an equity stake of up to 20% of the purchase price.

Posted by little professor @ 08:53 PM (6006 views)
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14 thoughts on “Taxpayer moneygrab

  • wonder where the next rises are going to come from?

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  • As a parallel to MBS (Mortgage Backed Securities) the Government could slice and dice the Help to Buy commitments into HBS (Help to Buy Securities) and then issue a new tranche of money thus keeping the party going – you heard it here first !

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  • @1 Unlocked pensions obvs.

    If there hasn’t been a backlash to BTL by this election, you can bet there’ll be one by the next.

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  • BTL is dead in the water at current yields for 99% of the country.

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  • As a parallel to MBS (Mortgage Backed Securities) the Government could slice and dice the Help to Buy commitments into HBS (Help to Buy Securities) and then issue a new tranche of money thus keeping the party going – you heard it here first !

    and after that, then what?

    @1 Unlocked pensions obvs.

    I just don’t see older folks really wanting to take on the burden of managing a property i.e. all the repairs and collecting the rent each month. They may be stupid enough to lend relatives money to buy property….but after all that….then what?

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  • HPW – lots of ways to keep the party going – won’t be long before 125% (Northern Rock style “Together”) mortgages are back on the scene – perhaps one of Mr Cameron’s little election give-away’s could be the “we’re all in it together mortgage”

    http://www.mortgagestrategy.co.uk/news-and-features/sectors/products/products-news/mps-plan-downing-street-talks-over-help-to-buy-2-private-sector-transfer/2011997.article

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  • HPW – lots of ways to keep the party going – won’t be long before 125% (Northern Rock style “Together”) mortgages are back on the scene – perhaps one of Mr Cameron’s little election give-away’s could be the “we’re all in it together mortgage”

    Yes, and what about being able to take out debt on those not yet born? I mean all else are completely soaked in dent, maybe UK government should also include the spirit world too?

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  • In spite of the low yields, BTL is still going mental as the other article attests.

    BTLs often refer to their portfolios as their pensions. I don’t think many of them sell up when they retire. Good way to keep busy, I would have thought. How much work is there to do if you pay the agents a management fee?

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  • In spite of the low yields, BTL is still going mental as the other article attests.

    I don’t doubt that loads are jumping in, with high hopes of becoming property millionaires – after all, property always goes up…and it is different this time!

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  • What is happening with BTL, is that Estate Agents get a sale fee plus ongoing rental fees from BTL. They therefore “manipulate” sales so that BTL investors get the property, often at a discount. We got Gazundered by a BTL investor connected with the estate agency we were using, offering £5k more than the BTL, but the Agent manipulated us through their mortgage broker, cancelling our survey without telling us!

    THE solution, is to split estate agency from letting agency. No company should be allowed to rent out a property the same company sold within 3 years of said sale. The ban should extend to Agents who work for the Agency.

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  • libertas – picking up on your last point, I’ve worked closely with a sole practitioner Solicitor in the North of England for several years and he has long been advocating a ban on EA’s who act on behalf of the vendor and then go on to offer their “services” such as in house mortgage adviser to prospective buyers as there is clearly a massive conflict of interest.

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  • @11/12

    I’m with Jack, the issue is that you went with their recommended broker. You shouldn’t even tell the agents what your actual budget is (especially foxtons).

    I’m sure the internet will dispense with agents in due course. In the meantime, we need an ombudsman and for the whole recommended broker thing to be enshrined in law. They covered that on Panorama/Horizons long before the crash. They had undercover journalists working at estate agencies (Foxtons IIRC) where they were finding out just how much buyers could afford to stretch themselves, then inventing phantom bidders to gazump them up to that amount. After that, there was clamour for an ombudsman but the Tories nixed the idea straight after the election, even though the agents’ own lobby groups were desperate for one.

    It’s a disgrace that some jumped-up phone shop employee can buy a cheap suit and suddenly earn £60k “negotiating” the largest transaction most people make in their lives, with all the sensitive information that comes with that, without having so much as a government body to keep them in line.

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  • Well they need to enjoy the 60k when they can get it.

    Saving housing will be the last thing on the governments mind after the next election, there will be so many cuts.

    My objection is that money is going into lousy housing at the expense of the NHS.

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