All of these government schemes to kickstart the property market look good initially, but once you take a closer look you will ultimately end up paying off an overpriced mortgage.
The fact that government is implementing these schemes is proof that the market in general in 20% to 30% overvalued and pretty much every respectable analysis of the UK housing market (IMF etc) comes to the same conclusion. Taxpayers money should be spent on health, education etc, not helping people to purchase overpriced property.
Shared Ownership:-
Most of these I have looked at, you actually end up paying more (in terms on monthly repayments = mortage+rent+service fee) for your percentage ownership than if you had payed in a normal 100% mortgage!
In general they don't make things more affordable. In some cases they do but not by that much
Help To Buy
After 5 years you start paying interest on the 20% loan so long term you still end up paying the overpriced mortgage. Once people realise that these hair-brained government schemes are a bum deal, prices could drop and you could be looking at high levels of negative equity.
The fact that government is implementing these schemes is proof that the market in general in 20% to 30% overvalued and pretty much every respectable analysis of the UK housing market (IMF etc) comes to the same conclusion. Taxpayers money should be spent on health, education etc, not helping people to purchase overpriced property.
Shared Ownership:-
Most of these I have looked at, you actually end up paying more (in terms on monthly repayments = mortage+rent+service fee) for your percentage ownership than if you had payed in a normal 100% mortgage!
In general they don't make things more affordable. In some cases they do but not by that much
Help To Buy
After 5 years you start paying interest on the 20% loan so long term you still end up paying the overpriced mortgage. Once people realise that these hair-brained government schemes are a bum deal, prices could drop and you could be looking at high levels of negative equity.
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