Unsurprisingly expats are not catered for in the Government’s second stage of their mortgage help scheme. Whilst there might be changes before funds are actually available next year(!), only a fool would rely on it! There was and is merit in the first part of the Government scheme which has aided builders and first time buyers. Unfortunately part 2 seems remarkably ill thought out. Already it has had the effect of producing a significant hike in property values in many areas, not least in our own area. So prices will now be pushed even further beyond the reach of the applicants the Government has said they are wanting to help. Excluding London which has its own dysfunctionality, many other regions as disparate as Liverpool, Brighton, the Cotswolds and Cornwall are all seeing increases in agents prices. We feel sure that come Spring 2014 there will be much hindsight led weeping and wailing over this ill conceived albeit well intentioned scheme.

Surely odd that the Government should choose the launch of this scheme to replace the Housing Minister and downgrade the position to that of Under Secretary! Perhaps the scapegoats are already being lined up. Although Virgin, Aldermore and HSBC have threatened involvement in the Government’s scheme, it’s no surprise that only the Government owned and controlled Lloyds which includes Halifax, and the Nat West/RBS Grouping have so far come to the party with available funds. Laughable that a Government spokesman yesterday said that his was a pure coincidence!

Rates for UK residents on residential loans, even at levels of 80/85% are available at rates in the 3% range. Applicants for the Government scheme can expect to pay 5-6%. Little doubt that the Bank of Mum and Dad will remain the lender of choice for many aspiring first time buyers and movers.

Nov 2013