Help To Buy scheme. Good or Bad?

Lima said:
Really? How amazingly naive....

I currently live with my fiancée and our joint income is £58,000 a year. We would like to buy a modest 2 bedroom house for about £250,000 (standard price where I live).
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The reason you are finding it hard to get on the housing ladder is the hideously overpriced property which exists where you live. I am firmly in the bad idea camp regarding help to buy.
Sadly it is political suicide to whoever is in power if those who have enjoyed the unsustainable boom in property prices over the last 12 years are made to crystalise any sort of apparent loss of value. Future generations will pay for it eventually, like with everything else.
 
dowie said:
nah that shouldn't happen... if they've lent 20% they'd get back 20% of the proceeds when you sell - your mortgage doesn't increase so if your house has risen in value you can still gain from that rise from your 80% stake in the property
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But if you re-mortgage at the market value as the property increases, then surely when you sell you would not see any extra money, which will generally make most people not want to sell?

I am not sure on the scheme because one person said it was 95% and another said it was a loan and a mortgage with no interest for 5 years.

For any mortgage if the deposit you have to put down is affordable and the mortgage payment per month is less than the market rent for the property. Then I would take the offer but i would be weary of restrictions on letting and other unnecessary clauses. Which would probably turn me off government backed mortgages if i did have enough for a deposit. I would also not buy a new build or a flat. I would buy as much land as possible and best house etc that i can afford, in terms of the deposit. Which i think most people do any way.
 
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groen said:
But if you re-mortgage at the market value as the property increases, then surely when you sell you would not see any extra money, which will generally make most people not want to sell?
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The value of your mortgage doesn't change when you remortgage (unless you want to increase it and receive the increase to your bank account), the LTV % decreases if property value goes up allowing you to get lower interest rates.

The difference between your outstanding mortgage and selling price you would see as money when selling.
 
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