An estate agent has lambasted the “rip off” mortgage rates in the Help to Buy scheme.
Brendan Cox, managing director of Waterfords which has branches in the home counties, said that buyers using the scheme will be penalised by its high costs. He said that some lenders are offering better rates and fees on 95% mortgages outside the scheme.
Last week, RBS (NatWest) became the first to reveal pricing of its Help to Buy mortgages, offering a two-year fixed rate deal at 4.99% with no fees. Halifax followed with a two-year fixed rate priced at 5.19% with a £999 fee.
Cox described the fees as ridiculous and said they make a mockery of the whole scheme.
He said: “There has been a hugely positive reaction to Help to Buy, which has got many people excited at the prospect of making a move.
“However, they will have to pay nearly twice the interest rates of anyone else.
“It is scandalous, and one of two things will happen: the scheme will fall flat and never actually get off the ground, or people will go with it because they have no other option, and will later find they cannot afford the repayments, which will result in a substantial rise in repossessions.
“We are supposed to be helping buyers, not setting them up to fail.”
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Comments
AoS - Things are relatively rosy in my wee patch of the world, thanks. Instructions and sales agreed are running relatively hand-in hand with each other; wastage is minimal and decent fees are actually easier to achieve than when you give away your services - so at least I might be able to put some turkey on the table at Crimbo (even if it is only turkey drummers...)! ;o)
I agree with your natural scepticism on the HtB Scheme. Like me, you've seen 'em come and go. THIS one is claiming to be the new Hovis - like they all do - but it's got more holes in it than Swiss cheese. BUT... all it needs is a few hundred takers to be heralded a success - and as with all these 'fixes', they are usually bandied around when things seem to be getting a bit better on their own steam, so they are a bit of a banker anyway.
No change there, then!
Why remove the post? They censored Biko and now Peebee!
Very daft to delete it, just makes EAT look silly. All good her my friend, I hope all is good in your world? Nice to see the old faces still popping up, or names even!
I see your angle.. i just am a bit dubious of the whole scheme.
???
My original post (that AoS responded to) has been deleted.
Anyone in EAT Towers care to tell me why?
AoS
Hello, mon ami!
I'm not saying I disagree with him.
The scheme was hatched in haste on the back of the New Build scheme. That had the backing of the builders who ploughed money into its conception and continue to do so with every sale taken as a result - because it benefitted them to do so - and now they seem to be reaping the benefits.
This HtB scheme is written on the back of a fag packet and has a budget of about seventy quid. So it's destined to go one way.
It's also taken so long to get it off the ground that the actual market itself has taken a slight turn for the better in terms of confidence and availability of funding as a direct result - therefore the scheme is pretty much redundant before it even gets off the ground.
But - to carp on about 'better deals elsewhere' is in my opinion dangerous. There is ALWAYS a better deal to be had; greener grass on another side of another fence.
As you and I both know (and I'm certain that Mr Cox does also..), the market will dictate the scheme's impact.
We simply need to watch this space.
Anyway, matey - how's tricks in your patch? ;o)
I agree with him. The objective is specifically to assist those who are in need of a hand to buy a home.
Giving with one hand, taking with other -it's called "help to buy"!!