Help to buy scheme

**northernladuk** · 19 April 2013, 10:19

It does look pretty good I must admit. A couple of members of SWMBO's family are looking in to it.

Thing is, paying it back after 5 years won't be easy for the people that this is really aimed at. For contractors or high earners it just equates to a 5 year interest free loan I believe. Certainly not to be sniffed at if you can use it.

Did they ever resolve the issue about a parent or other getting the mortgage for their kids that apply and getting the same deal? I could get some BTL's using SWMBO's families allocation if they don't intend to use it. Have to be point out they will not be first time buyers afterwards though... or I might forget that bit in the rush to get some nice properties

I would be very interested to see the small print though. I can't believe for one minute it is just open season. Surely they will be putting some kind of restrictions on it to make sure that people that need it can benefit rather than well off people just seeing it as cheap money.

Will be looking in to it more when I get the time. If someone could post the links to the details it would be helpful.

**Mehmeh** · 19 April 2013, 10:35

A useful link:

Government Help to Buy Scheme ? A Brief Guide for Buyers

**jamesbrown** · 19 April 2013, 10:47

Originally posted by northernladuk View Post

It does look pretty good I must admit. A couple of members of SWMBO's family are looking in to it.

Thing is, paying it back after 5 years won't be easy for the people that this is really aimed at. For contractors or high earners it just equates to a 5 year interest free loan I believe. Certainly not to be sniffed at if you can use it.

Did they ever resolve the issue about a parent or other getting the mortgage for their kids that apply and getting the same deal? I could get some BTL's using SWMBO's families allocation if they don't intend to use it. Have to be point out they will not be first time buyers afterwards though... or I might forget that bit in the rush to get some nice properties

I would be very interested to see the small print though. I can't believe for one minute it is just open season. Surely they will be putting some kind of restrictions on it to make sure that people that need it can benefit rather than well off people just seeing it as cheap money.

Will be looking in to it more when I get the time. If someone could post the links to the details it would be helpful.

As I understand it, it's probably less appealing than it first seemed. Certainly, it doesn't apply to BTL, but it also doesn't apply to people that have more than a 5% deposit (at least, the amount that can be borrowed is reduced to reflect that, although precisely how that will be policed, I don't know). The first part of the scheme (available now) is also restricted to new builds.

**LisaContractorUmbrella** · 19 April 2013, 10:50

Don't think it applies to people who earn more than £60k a year either so that's you out NLUK

**Ketchup** · 19 April 2013, 10:57

Doesn't the current scheme only apply to new homes? It is the one that is due to commence in 2014 that can be used against any property

**northernladuk** · 19 April 2013, 11:33

Originally posted by LisaContractorUmbrella View Post

Don't think it applies to people who earn more than £60k a year either so that's you out NLUK

I only earn 9k a year Lisa... You should know that by now

**ThomserveBAS** · 19 April 2013, 11:48

I'm currently looking at the new government schemes so have been reading up quite a bit on them.

I contacted a development in Clitheroe enquiring about the scheme, first I was told I wasn't eligible if I already had a property, then I was told I'd have to use their own "independent" mortgage advisor so I've given it up as a bad job for now.

Information on the Equity Loan scheme is still very scarce and doesn't go in to details such as early repayment of the loan (i.e. what you actually pay back at the end of the term because an equity loan is exactly that, the government will own a percentage stake in your home, so at the end of the 5 years, to avoid interest, you'd need to pay off the 20% loan but that is based on the value of your home at the time you settle the loan IIRC so you could end up paying more if your house has increased in price or less if it has lost value).

Also this crap about using the developers mortgage advisor, if this is a common policy, will scupper many contractors, especially those who haven't been trading for the mandatory 3 years most lenders ask for.

EDIT: Just seen the link Mehmeh posted which contains a lot of useful info.

**northernladuk** · 19 April 2013, 11:58

Originally posted by ThomserveBAS View Post

Also this crap about using the developers mortgage advisor, if this is a common policy, will scupper many contractors, especially those who haven't been trading for the mandatory 3 years most lenders ask for.

This isn't true though. For a start I thought it was 2 years but either way many lenders now don't impose this restriction. They will quite happily speak to your accountant if you are midway through a year and also take a mix contracting/perm. I have applied for 2 mortgages with less than 2 years and another with 4+ years and in not one instance was even an eyebrow raised. I explained the situation, they just said send whatever year end accounts I have and my perm details. Not a problem.

I think times and attitude of lenders have changed a lot since the 2 years or we don't talk to you times. Don't take this as a given and jump in. It may be a hiccup with the odd lender but is certainly not a stopper.

**LisaContractorUmbrella** · 19 April 2013, 11:58

Originally posted by northernladuk View Post

I only earn 9k a year Lisa... You should know that by now

Oh yes, sorry, course you do

Help to buy scheme