James
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Registered: 1st Jun 02
Location: Surrey
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http://www.guardian.co.uk/money/2009/may/20/lloyds-tsb-first-time-buyer-mortgage
Sounds like a good concept and appears to offer a very competitive interest rate.
However it will only really help people with rich/friends relatives.
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Colin
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Registered: 4th Apr 02
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I dont personally know many people who's parents or grandparents can stump up 20% deposit or would want to to only get a 3.5% return.
I wouldnt qualify anyway as im not a 1st time buyer.
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Ian W
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Registered: 8th Nov 03
Location: Wirral, Merseyside
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Shame I don't know anyone with 20k knocking about 
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Brabus
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Registered: 25th Oct 07
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I would imagine that most 1st time buyers who have parents with £20k to spare wouldnt need to use the scheme. Another pointless exercise to boost the houseing market, after all, without FTB's the market will never pick up. The government should be doing more, a lot more if they want things to change.
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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I don't think much of it
Corsa 2.0 16v Vegas - Sold
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dannymccann
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Registered: 9th Aug 06
Location: Doddington, Lincolnshire
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quote:
Originally posted by Brabus
I would imagine that most 1st time buyers who have parents with £20k to spare wouldnt need to use the scheme. Another pointless exercise to boost the houseing market, after all, without FTB's the market will never pick up. The government should be doing more, a lot more if they want things to change.
Exactly, why would I want to have only a 5% deposit put down, if you got the scope for 25% you would put most of that down and get a cheaper monthly payment surely 
Either way, theres very few people who know someone with £20k knocking about
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Brabus
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Registered: 25th Oct 07
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Plus with only 5% deposit your more likely to fall into negative equity the way house prices are still going, so why would you not have your parents/grandparents put the cash towards a bigger deposit.
[Edited on 21-05-2009 by Brabus]
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jungle
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Registered: 22nd Nov 07
Location: methilhill,fife
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well our 25% was better off spent on the house means we have even less to pay back lol and means we will be morgage free by the age of 45 lol and i thinks thats good going 
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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I thinks its more geared to the mid range sort of people, i.e. parents who have some spare cash (savings, equity in their own house, investments, etc.) but dont have enough to just hand over the £20k.
This way it allows them to give them the £20k for 42 months (I think thats what I read) and get it back at the end of it, but still actually helping their kids.
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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Really dont see how this helps the real people who are looking to buy houses, nobody i know who is looking to buy their first house has parents with £20k in the bank
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John
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Registered: 30th Jun 03
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I know of at least one real person that this could benefit.
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Brabus
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Registered: 25th Oct 07
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quote:
Originally posted by John
I know of at least one real person that this could benefit.
How many people do you know that could benefit from a straight up 95% no catches mortgage product....a lot more still needs to be done.
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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quote:
Originally posted by John
I know of at least one real person that this could benefit.
Good for you 
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Of course it will benefit people, it just happens that none of you lot will be helped by it.
The bank wouldnt bother bringing it out and paying for all the marketing if it would appeal to a large number.
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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This is the mortgage i think i will be using to getting my first house
My parents have the money to help with a deposit, bt would prefer to not have it tied up indefinately in a house (earning no interest) when they could have it in a savings account earning 3.5% gross which is possibly more than it is earning already
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Ben G
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Registered: 12th Jan 07
Location: Essex
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my nan said i can borrow some deposit monies for a house so this could be a good deal
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AndyKent
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Registered: 3rd Sep 05
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quote:
Originally posted by strick206
This is the mortgage i think i will be using to getting my first house
My parents have the money to help with a deposit, bt would prefer to not have it tied up indefinately in a house (earning no interest) when they could have it in a savings account earning 3.5% gross which is possibly more than it is earning already
There is still a legal tie on the money though, which is fine if you're parents have no plans to spend the money, but technically they can't withdraw it.....
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ENB
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Registered: 24th Apr 06
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quote:
Originally posted by Brabus
quote:
Originally posted by John
I know of at least one real person that this could benefit.
How many people do you know that could benefit from a straight up 95% no catches mortgage product....a lot more still needs to be done.
Who are the same people who contributed to the problem in the first place...
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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Mortage providers are starting to offer 90% LTV again, Nationwide recently and Britannia next week are just a couple.
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John
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Registered: 30th Jun 03
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There have been 95% mortgages throughout, just with higher rates.
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strick206
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Registered: 12th Apr 07
Location: Wigan Drives:Integra DC5
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I don't think this mortgage is worth the paper it's written on tbh
After having a meeting today with the aim to sorting it out, we was quoted incorrect figures
Basically the money your parents put down, say it's a 100k house. you put 5k deposit, they put 20k in a savings account
The house has to have increased in value by 20k for that 20k to be released after three years. If not it goes on a shit rate for another year.
But i thought it would be something to bring the emount you need to borrow down, and re-mortgage for the full amount after three years
But you would still be making repayments on 95k. And imo the parents may aswell tie the money up in the house
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Cavey
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Registered: 11th Nov 02
Location: Derby
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It's just a better chance for first time buyers to get on the market though. The mortagages i've been looking at are 15% deposit minimum. This one is obviously 5%, which is a lot easier to find.
It means the parents, or grandparents who put up the 20k, get 3.5% interest, and in theory won't lose any money, instead of giving over 20k as a deposit, where they could risk it.
I'll hopefully be enquiring about this in the coming weeks, the missus had a call from her gran informing us about this, saying she'd put up the 20k in savings, so can seriously think about looking around now.
Unfortunately the ones we were looking at were OIRO of 109,950, but apparently they're attracting offers around 130 which we can't realistically afford at the moment
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Cavey
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Registered: 11th Nov 02
Location: Derby
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Also, an interest rate of 4.39% for 3 years is a lot better than the fixed rates i've seen on any of the 15% mortgages i've looked at
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AndyKent
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Registered: 3rd Sep 05
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The problem is with these sorts of mortgages is that they artificially help keep prices at a higher level, same goes with shared ownership.
What happens is that first-time buyers who couldn't normally afford a mortgage can now get one but if all these 'helpful' products disappeared the only option would be for house prices to fall to a more affordable level for everyone.
Especially shared ownership - complete rip-off and I'd advise anyone to avoid.
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
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quote:
Originally posted by AndyKent
The problem is with these sorts of mortgages is that they artificially help keep prices at a higher level, same goes with shared ownership.
What happens is that first-time buyers who couldn't normally afford a mortgage can now get one but if all these 'helpful' products disappeared the only option would be for house prices to fall to a more affordable level for everyone.
Especially shared ownership - complete rip-off and I'd advise anyone to avoid.
Do you talk from experiance with regard to SO?
I understand that the schemes do artificially keep house prices high, but without them house prices wouldn't fall enough to enable first time buyers to buy the houses outright anyway.
For example based on £100,000 house on Shared Ownership, buying 50%, the buyer has to find 15% deposit = £7500
Without these schemes, lets say house prices were 20% less(which they wouldn't lets face it) House £80k, 15% Deposit = £12000
I got my house, a new build on SO at 50%, last year, i have since remortgaged and own it 100% outright. Without the scheme i would have been living in a crappy run down terrace with no drive/garden etc.
Also, say house prices did drop considerably witout the scheme, that would put a lot of home owners in negative equity anyway.
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