help to buy is stupid

[ethicalsusan]

Lots of people on 100k+ have used it and if anything it has pushed prices up even higher. All it seems to be is helping people get into greater debt.

Friend was going on about how marvellous it was, just seems very shortsighted and pours fuel on the fire. I thought lending money to people that couldn't afford it was he whole problem anyway?

initially, but then it's paid back?

interest free, no? there's a cost to that. there's a reason why we don't all get that deal.

You need a 6 figure salary round here to get the multiples for a 2/3 bed semi.
I rent (without benefit) we don't earn the multiples or have the deposit help to buy or not. But we could afford the repayments on the mortgage as we already cover more than we would be paying.
But I can see how it would help if you were in a better priced area.
The ethics of house prices having to be backed by the government is bonkers and the whole scheme relies on house prices going up in 5 years so it's not sustainable as in 5 years time how are the next lot going to buy?

The Mail have done their typical ridiculous skew on this story. If you look at the proper published figures and not their slant on them, the average purchase price for a property bought with HTB is around £130k. And even if some couples earning £100k are using it, that's not actually that much money in London, especially if you have a family to support. They would still be having to borrow at least 4 x their combined salaries to buy a 3 bed flat in most of London!

The point is to help people who are currently having to shell out loads in rent to buy a property when they normally wouldn't be able to save the 20% or so deposit most mortgages need.

I guess OP you are referring to people trying to buy in London on six figures. It's a shame that people earning that much can't afford to buy a 2 bed apartment without government help.

London is crazy at the moment. Our house has increased by at least 50% in 5 years. We couldn't afford to buy it now and probably wouldn't get a mortgage with the new rules.

I thought the market would tank when we first bought so l chucked a lot on the mortgage to try to pay it down asap. How wrong was l.