Help to Buy Isa scandal

[stu007]

The Government’s much vaunted Help to Buy Isa was on Friday described as a “scandal” after it emerged that first-time buyers will not be able to use it for an initial deposit on their new home.

 

More than 500,000 savers have opened the accounts after being told by George Osborne, the former chancellor, that it provided “direct government support” for those saving for a deposit, as a way of getting “Generation Rent” on to the housing ladder.

 

But on Friday it emerged that a flaw in the scheme means a 25 per cent government “bonus” on savings will not be paid out until the sale has completed.

 

READ MORE HERE: http://www.telegraph.co.uk/news/2016/08/19/help-to-buy-isa-scandal-500000-first-time-buyers-told-scheme-can/

[Consumer dude]

Nothing surprises me with any government, they are basically self serving..

[ssett]

Pathetic terms of 'their home', 'get on the housing ladder' to lure people into hanging a millstone of debt around their neck.

 

'Ladder' implies prices always go up - they don't!

 

The house is not yours it is the banks - they own it not you. You have to pay the council tax, bills and upkeep for the bankster owner and if you don't they kick you out on the street - is it your home if that can happen! It is like supermarket special offers or furniture 'sales'. Enticement.

[Consumer dude]

I even heard the ground underneath your so called home doesn't belong to you either..

[colin11]

It still has to be better to buy your own home

 

The alternative is to rent forever, With the likely hood of having to move from time to time

 

I pay less now for my mortgage than i did rent before, And i only took my mortgage over 18 years

 

So in 15 years I will own this house outright, That has to be better than renting ?

 

As for house prices going down as well as up, I don't care, I will never be selling

[mariner51]

ssett, IMO 'housing ladder' refers to being able to expand if nec (more rooms for future children/work etc) & downsizing as required.

A mortgage is a regulated Consumer debt that needs to be satisfied within the Term or when demanded.

The buyer 'owns' the Property but Lender puts a 'charge' on the property to protect their loan if property sold.

Any 'free' money from Govt likely comes with 'strings'. ISA's can be transferred between Providers, so the Lender, likely a Provider, may be able to offset ISA against deposit until Sale completes & Govt coughs up the bonus.

Similarly prospective owner can take out a short-term loan for deposit, to be paid off when ISA 'cashed in'.

One such ISA saver on TV news today was contemplating paying deposit via interest free CC.

 

Not that I recommend any particular approach, other than 'thinking outside the box' for a solution.

Govt is unlikely to bring their flagship Policy into disrepute and may change the rules.

[legalistic]

Yes, it's a scandal. But, until the government changes the law, there are surely ways around the problem. As a non-lawyer I can see at least one way and that would be to exchange contracts and complete on the same day.