[Closed] Help to Buy

It does look that way, but some politician is on TV this morning saying its only going to run for three years, and will be stopped early if it looks like another bubble is starting. We shall see.

To me it seems crazy and irresponsible what happens if interest rates go up even slightly?

Yep crazy. But I will be someone who takes advantage in order to get a decent LTV and cheaper rate. Prices are ridiculous at the moment but I see them only going up so if we want to move to a family home rather than be stuck where we are forever (as our wages are staying static) then we need to take this opportunity.

I worry some numpties will think it is free money from the government....

If interest rates go up to 6 or 7% in the next few years nearly everybody I know who is my age would be in serious difficulties financially most likely losing their homes.

But apparently I'm "rich" if you believe other threads...

So by the logic of if it starts another bubble it will be stopped - shouldnt it already be stopped ? Prices here have gone off the scale again

Cant it only be used for first time buyers DT78?

Rents around here are ridiculous at the moment. You'd be getting a big mortgage for the amount you need to pay each month, but its that vicious circle of needing somewhere to live but not being able to save a penny that causes the problem. I know if we were looking to buy now we wouldn't stand a chance as we have sod all left each month...

In basic terms unless more people enter the market at the current prices then those older people who (think they have) made a killing buying cheap and paying off their mortgages won't be able to get their money out and keep the whole thing rolling on. There are also too many people who are potentially in negative equity if they had to move or get out so propping up the housing market is a good thing for keeping nice middle class voters happy.

Possibly the better way to get more first time buyers into the market would be cheaper houses and a general crash in the market but building takes time and crashes are unpopular.

So yes a bit of a bad idea but then again it's what the voters love 🙂

AA they seem hazy with the details, but I am believe it applies to everybody. We were already looking at the current scheme but that only applied to new builds and I would prefer an older build. As soon as the small print is available I will be spending a lot of time reviewing. Big thread on MSE.

Suggesting find cheaper houses is all well and good if those houses are built near employers looking for people with your skills.

Vthing is the high rents are showing the whole mess is down to lack of supply not a lack of ability to pay the mortgage.

mortgage being affordable at .5 over base is one thing. When rates hit 6 or 7 that will be another. We need to be weened off low interest rates gently or there will massive pain. Can't see this scheme helping (even though we will likely use it)

But yes supply seems to be the main problem, certainly at entry level.

The new builds I've looked round dont seem great value when you see the size of the land, fact the roof space is often used etc etc.

Dt78 your right - new build value isnt great but some folks would rather have new at all costs. I was in a 345k 4 bed earlier this year . Had just been through snagging for every room needing replastered and redecorated - after 6 months !!!!

It was pokey and my biggest gripe - try buying a new house with access to back garden other than a narrow passage between you and next door - or with the house not built right at the front of the plot to create the illusion of a big garden.

And dont get me started on that they call a 1 car garage in new builds. Sun roof was a must have if you didnt drive an old school mini.....

Seems dave and Gideon are quite happy to allow government to intervene with their beloved market forces when there's an election coming up.