davros1984

Hi,

With the Help to Buy schemee - phase 2 having gone live in the UK today, what impact do you think this will have?

I am actually in total support of the policy as it will really help someone like me get on the ladder. I do think though that the top-end of 600K is a bit high!

However, I am looking at going back to the UK from NZ in March-April next year. My big concern is that by then prices would have sky rocketed and you will no longer be able to make sensible offers!

Looking forward to reading replies.

HighCaper

I'm really hoping that the market stays stable where it is currently as no-one can afford price hikes ! Once the Bank of England increases the base rate (which it will do at some stage) then the already financially assisted buyers are going to suffer ! Not to mention the tax payers who have helped them with their deposits, thanks to the government.

I am personally against any "assist to buy schemes" as it distorts buying power. I think that the base rate should have been increased which in turn may force existing property prices down so that first time buyers can afford them without the governments financial assistance

davros1984

I hope it stays stable, I really really do. I will be devastated if I go home in March-April and prices have gone up by at least 20K GBP.

The main reason I am leaving NZ is to be able to actually buy a house in an area where I have a good range of available jobs in my line of work. So the plan is to move to the north midlands or even further north.

I think first-time buyers need assistance with deposit levels, but I think banks by default should allow 90-95% deposits to those who can clearly show that they can afford the repayments. Whether that should require government aid/intervention.....

roaringmouse

Indeed - the government has in effect become a subprime lender and guarantor.

pippalonghorn

I would be really surprised if the house prices rocketed in the next 6 months. We are just coming out of a recession and people are still cautious about spending money. There are a lot of people still in negative equity from the last house crash.

Bud the Wiser

Government trying to create a feel good factor before the next election.

Politically good - economically bad.

mayhemuk

What everyone keeps forgetting is there's still huge costs associated with purchases.
Have seen enquiries specific to these schemes start coming in. So you discuss with clients.
Then ask them about funds for purchase costs, which if you use say half of the schemes scope = £300k purchase is £9k stamp duty they go quiet!!!
It's going to be uphill for many people as they will be stress testing for higher rates of affordability aswell.
Still waiting for all the information to come out.

So it might not have quite an immediate impact because it will remain largely unaffordable for many.

(Also to pass for a 95% mortgage credit must be in much better shape for lower loan to value)

Spacecake799

Hi,

Firstly I don't personally think prices will sky rocket. They know that would put the economy back where it started so what's the point.
We also hoped to buy a place here after leaving NZ and will use the scheme to give us a better deposit.
It is my understanding that banks will not just hand out a mortgage to anyone with a 5% deposit now but in act you will have to satisfy a bank that you can afford an interest rate of 7% on your wages to allow for price rises in the future.
Also with regards to IT work, I heard not long ago that Leeds is now the second biggest city for finance and IT so you may have even more choice of housing.
Good Luck