Bill Oddie petitions against HSBC for financing deforestation

At Harvey Bowes Limited, we are not really known as a company that knocks the banks, they are in many respects the life blood of the economy. However, when this video, by Bill Oddie came to light, showing HSBC in their true light, we thought it was of interest. A powerful message, delivered in a light hearted fashion.

Help to Buy available in Wales – now!

Finally, in the second phase of Help To Buy, the government has authorised the scheme for Wales (the initial phase of Help to Buy is not available in Wales).  So what is Help to Buy, how can it applied for and what effect will it have on the property market?

Help to Buy available in Wales

Help to Buy available in Wales

It is important to qualify that the first phase of Help to Buy was available for the purchase of newly built property only, however, the second phase is designed to support the broader housing market by helping prospective home owners buy pre-owned properties.

There is no doubt this scheme will have an impact on the market – after all, it gives both first time buyers and home-owners looking to move on, the opportunity to a home with as little as a 5% deposit. What’s more, this is not a shared ownership scheme. Nor is it a government loan to be re-paid like the existing Help to Buy phase one. It’s simple, Help to Buy phase two gives the home-buyer the opportunity to have 100% ownership and buy a pre-owned home from any Estate Agency. This will have a much broader appeal than the existing scheme which was restricted to new build homes and a limited number of new home developers.

How does Help to Buy phase two work?

First of all, let’s dismiss a few myths. Firstly, it is not really a new idea. It is a development of the old MIG (Mortgage Indemnity Guarantee). This was a scheme previously used to indemnify the mortgage lender against potential loss in the event that a home was repossessed. It was commonly used to limit the risk posed to the lender where the home-buyer had a smaller deposit.

Does this mean that it is a bad idea? Not at all, it worked before and this revised edition will no doubt work again. This time, the indemnity that protects the lender is coming from the Government. That said it is important to note that the sole responsibility to pay the mortgage is the duty of the borrower and this scheme is not designed to reduce that responsibility. However it is designed to protect the lender and therefore encourage lending to be made available with a smaller deposit.  This is a much needed development in the current constrained market.

Contrary to many myths, Help to Buy 2 is available right now. Initially intended for 2014, the government brought the scheme forward. And it is also available in Wales. Help to Buy Wales is being promoted throughout the whole of Wales. With Estate Agents from Cardiff, Swansea, Newport and the surrounding areas promoting that pre-owned properties in wales can be purchased using the scheme with just a 5% deposit.

And the scheme is not just available to First Time Buyers looking to get a first time buyer mortgage. It is also available for those who already own a home, but are looking to move on. This does not mean that the scheme has been made available for property investors however, it is strictly for the purpose of buying a home as the buyers own residence.

What is the application process?

At Harvey Bowes Mortgage Brokers, we advise that you discuss your requirements with a mortgage broker (one that understands Help to Buy) before making any other decisions. Find out how much you can borrow and how much that is likely to cost before committing to a property. When it comes to the application process, your mortgage broker can prepare and package the application for you. If you want to know more about Help to Buy, contact one of the team at Harvey Bowes today on 029 20 676716.

 

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

THE VALUE OF PROPERTY CAN GO UP OR DOWN – WITH A SMALL DEPOSIT THERE IS A RISK OF NEGATIVE EQUITY IF PROPERTY VALUES FALL