Budget 2021 95% mortgages back

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Budget 2021 95% mortgages back

    i wonder what the details are going to be?

    could a couple on min wage really get a 95% government mortgage with only a 5% deposit?

    #2
    What I don’t understand is the government will be guaranteeing these 95% mortgages?

    on the one hand I read ...........

    The scheme, which will be subject to the usual affordability checks, will be available to lenders from April.


    But it then I hear......


    Lenders are typically less likely to approve mortgages when such a small deposit is put down, due to fears the home buyers will not be able to pay the full amount back. So the government will step in to guarantee them.

    The economic impacts of the coronavirus pandemic mean that low-deposit mortgages have "virtually disappeared", according to the Treasury.

    So so what are the details?

    Comment


      #3
      Originally posted by BBC News
      A mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced at next week's Budget.
      Wait till next week to find out?
      I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

      I do not answer questions through private messages which should be posted publicly on the forum.

      Comment


        #4
        As I would like to sell some btl properties it would be nice to have some incentives to sell to tenants. How about a cgt break?

        Comment


          #5
          Loads of ways, e.g

          First time buyers are exempt from FCA rules so lenders can make their own lending decisions.

          Comment


            #6
            I would give some tenants a 5% discount but there were rules stopping that working as a deposit.

            Comment


              #7
              Will it still be based on 4-6x earnings or will the government guarantee let people borrow more

              Comment


                #8
                Originally posted by Codger View Post
                As I would like to sell some btl properties it would be nice to have some incentives to sell to tenants. How about a cgt break?
                Don't expect a CGT break but do expect a hike. someone has to pay for Coronavirus and it looks like property is an easy target. This would be ok if there was some sort of taper allowance -there is a difference between making £50k over 10 years or 1 yr!

                A big hike in CGT is also likely to cause many LLs to hold onto properties they might have thought of selling, possibly reducing the stock available to the FTBs clutching their 95% Govt backed mortgages.

                Comment


                  #9
                  I have sympathy for people trying to get on the property ladder who can't save because they are paying rent, rent which is often higher than a mortgage would be. But I am concerned that someone with no savings at all may find buying a house breaks them financially - how often do you buy a house that needs no money spending on it?

                  As a country we need to build more affordable housing, both for purchase and for renting. Then we can do away with Govt interference in the mortgage market.

                  Comment


                    #10
                    A lot of tenants have practical skills that are going to waste while they are renting. I remember when right to buy council houses started under mrs t. There was a blossoming of colour on the front doors of council houses as the new owners showed their stuff.
                    there was also a lot of odd rendering with fake stone!

                    Comment


                      #11
                      I suspect the devil is in the detail so far as this high LtV is concerned.

                      I do not believe the government are going to use capital to fund the difference between what the lender will offer and the 95% loan required , this could in turn be a variant of the old Mortgage Indemnity Scheme which was provided by 4 leading Insurance Companies ( L&G , Phoenix Ins, EagleStar ,General Accident) A single Premium was paid by the borrower to cover the excess between 75% of the loan and up to 95%. The total loan however had to be suitably covered by the applicants income to meet the 95%. In the event of the loan defaulting , the lender had recourse to claim the amount of the loss on subsequent resale of between the base 75% & the actual loan advanced .
                      I cannot envisage any lender increasing its lending incomes to accommodate such high LtV’s , I may be wrong but I understood that it was to help those who struggled to raise the additional monies over and above the maximum presently available, InterestRates may not stay as low as they are at present if there are inflationary elements built into the anticipated post Covid 19 and whilst such rises may seem nominal borrowers will still face the prospect of higher interest rates down the line and mortgages at such high levels of LtV being on Capital & Interest rather than Interest Only this could prove to be the straw that breaks the camels back andcould result in a marked increase in repossessions and adversely affect the stability of the property market.
                      I may indeed be way off in my assumptions so lets hold our breath untilWednesday afternoon.

                      Comment


                        #12
                        More details are being released and my interpretation posted yesterday is indeed to correct and which the government will put in place , it also extends to homemakers and NOT restricted to new homes.

                        Comment


                          #13
                          I had my 1st mortgage when interest rates jumped at least 6 % to BoE 17% under Thatcher. It's going to be painful,covid and Brex**** need to be paid for.

                          Sorry people
                          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                          Comment


                            #14
                            Slightly off topic, but I have some mortgages coming up for renewal in May. Since November, I have been receiving letter after letter from the mortgage provider, reminding me about the renewal in May - urging me to either contact them or my broker so they can get me on to a new deal.

                            In all the years I have been a landlord, I've never had this before. Previously, just a reminder letter to let me know a deal is coming to the end.

                            Any ideas why the lenders are so keen?

                            Comment


                              #15
                              Can you get more than 6x earnings?

                              Comment

                              Latest Activity

                              Collapse

                              • Reply to Positive News for Landlords
                                by loanarranger
                                You make a fair point and one which I cannot but agree with but as with what I try to do on the Forum I simply report the news and media comment from lenders and other related parties.
                                10-04-2021, 15:30 PM
                              • Positive News for Landlords
                                by loanarranger
                                I am detailing an article which has appeared in a leading Trade publication and written by Bob Young C.E.O of Fleet Mortgages which sets out his thoughts and the information gleaned from the recent Capital Economics Report on the Housing Sector. Well worth reading over a cup of coffee

                                "...
                                10-04-2021, 11:23 AM
                              • Reply to Positive News for Landlords
                                by royw
                                Sounds like spin to me. There's a stamp duty holiday but the price increase in my area far exceeds the tax saving. Not sure how that benefits Joe Public. Funny how they are completely blind to the problem of evicting non paying tenants, added costs with eicr and EPC and potential removal of S21. I haven't...
                                10-04-2021, 13:11 PM
                              • Reply to Mortgage News
                                by loanarranger
                                Halifax improves the transparency for Non UK Nationals
                                Halifax overhauls mortgage criteria for all non-UK national applicants

                                by: Owain Thomas

                                Halifax is overhauling its mortgage application criteria for all non-UK nationals following Brexit.


                                Many lenders have been...
                                10-04-2021, 11:28 AM
                              • Mortgage News
                                by loanarranger
                                The following article has appeared in one of the Mortgage Trade journals reporting on views expressed by the Association of Mortgage Intermediaries an influential trade body within the mortgage industry.

                                "Mortgage rates are likely to rise in the first quarter of 2016 as lenders look...
                                23-12-2015, 19:43 PM
                              • Reply to Advice on first purchase
                                by loanarranger
                                Gordon thanks for clarifying what I tried to communicate.

                                The normal minimum age of an applicant is 21 and sometimes 25 but there are several lenders including Clydesdale who will accept persons having attained 18 years of age
                                10-04-2021, 09:40 AM
                              • Advice on first purchase
                                by Muggy0101
                                Hello there. I’m just looking for some advice really. For the longest time I’ve always wanted to do what my father and my family do which is be a landlord for a second income. However I’m quite muddled as to what I need to achieve before I can.

                                I’m 20 year old working full time...
                                07-04-2021, 23:52 PM
                              • Reply to Advice on first purchase
                                by Gordon999
                                Muggy0101,

                                I think what loanarranger means by "Involvement of your father" is to buy the first rental property in joint names with your father; and you can register the buyers as "tenants in common" to take a larger interest in the property.

                                ...
                                10-04-2021, 06:23 AM
                              • Tenants in common: Individual names and Limited company on one title
                                by anilvek
                                Hi all

                                Basically, before I start, I have spoken to accountants and solicitors who think I am frankly absurd and my proposal is something that is unheard of following which I have decided to not to go with this route, given changing landscape of BTL I wanted to ascertain how absurd my fellow...
                                08-04-2021, 12:22 PM
                              • Reply to Tenants in common: Individual names and Limited company on one title
                                by nukecad
                                No confusion on my part, I'm just pointing out that rewording your proposal using simpler language may get you further.

                                I'm not the one having a problem with getting accountants/solicitors to understand a proposed scheme.
                                But if I was then I'd try rewording it.
                                10-04-2021, 02:19 AM
                              Working...
                              X