Help to Buy

[bingobob]

The other point I have noticed with Halifax having given access to apply for a 95% mortgage as of last Friday is that they are credit scoring the applications very harshly. I am finding it quite common for Halifax to advise they are not happy to lend 95% but will lend at 90% in which case, HTB 2 is not going to help you.

Thanks for the update, excellent news that banks are applying some common sense here and long may it continue. I suspect the intention of the Help to Buy, scheme is really only to benefit the construction companies and HTB2 was only ever intended as lip service to the second hand market.

Could you share any experiences that you have with re-mortgaging onto the Help to Buy scheme? One of the obvious benefits of HTB is that it makes it easier for banks to repossess without impacting their balance sheet. With this in mind it would seem a prudent move for banks to encourage those customers in arrears to switch to HTB products, just wondering if you've seen this at all (obviously it's unlikely these customers will come through you, but you may have some inside knowledge as it were)?

[northernladuk]

Thanks for the update, excellent news that banks are applying some common sense here and long may it continue. I suspect the intention of the Help to Buy, scheme is really only to benefit the construction companies and HTB2 was only ever intended as lip service to the second hand market.

Could you share any experiences that you have with re-mortgaging onto the Help to Buy scheme? One of the obvious benefits of HTB is that it makes it easier for banks to repossess without impacting their balance sheet. With this in mind it would seem a prudent move for banks to encourage those customers in arrears to switch to HTB products, just wondering if you've seen this at all (obviously it's unlikely these customers will come through you, but you may have some inside knowledge as it were)?

Looking at the rates these are on I can't see how re-mortgaging is going to help anyone unless you just want to get your hands on as much equity as you can... and if so I would ask why but re reading I don't think that was your point. Either way I would be disappointed if banks see not impacting their balance sheets upon repossession as one of the benefits.

[Power Mortgages Ltd]

Thanks for the update, excellent news that banks are applying some common sense here and long may it continue. I suspect the intention of the Help to Buy, scheme is really only to benefit the construction companies and HTB2 was only ever intended as lip service to the second hand market.

Could you share any experiences that you have with re-mortgaging onto the Help to Buy scheme? One of the obvious benefits of HTB is that it makes it easier for banks to repossess without impacting their balance sheet. With this in mind it would seem a prudent move for banks to encourage those customers in arrears to switch to HTB products, just wondering if you've seen this at all (obviously it's unlikely these customers will come through you, but you may have some inside knowledge as it were)?

Help to Buy is strictly only available for purchases, not remortgages and I cannot see that changing either.

I think you are right though, HTB 1 was to help construction companies and to boost that part of the economy and HTB 2 which was initially intended 'to provide cheap mortgage funding for people with low deposits to help stimulate the second hand market' has turned into a bit of a damp squib only being available to people with A+ credit with a 5% deposit. Before more details of the plan came out and knowing the Government would guarantee 80% - 95% of the property value I assumed that lenders would offer better rates for anyone putting down a deposit up to 20%. In fact it has only led to a new tier of loan to value being available (90% - 95%). As mentioned if you have atleast 10% you're better off not using the HTB 2.

I can see it helping a few people out, such as first time buyers who simply cannot raise a 10% deposit or next time buyers who purchased at the height of the market with a minimal deposit who have very little equity in their current property and would like to move but that aside I cannot see it as being as effective as first thought, probably for the best though regarding house prices and a possible bubble.