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Govt 99 per cent LTV scheme ‘absolute madness’ ‒ Star Letter 23/01/2024

  • 26/01/2024
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Govt 99 per cent LTV scheme ‘absolute madness’ ‒ Star Letter 23/01/2024
Each week Mortgage Solutions and its sister title, Specialist Lending Solutions, pick the top comments from our readers.

This week’s comments come in response to: Government hints at radical plans for 99 per cent mortgages ‒ report

Derek Compton said: “Madness, absolute madness. I predicted the Help to Buy (HTB) scheme would inflate house prices with builders increasing their prices as the buyer still needed a lower deposit than they previously did.

“Inflated new build prices inevitably inflate preowned prices. We only needed those rises to continue and then an increase in rates and people trying to get out of HTB would have massive payment increases that apparently they could not afford or want years earlier.”

He added: “On the basis of that, we have more people behind in payments, more repossessions, and people cancelling other direct debits such as protection to meet the increased bills.

“99 per cent loan to value (LTV) mortgages will be, yet again, another boon for builders. They will increase prices and make more profit and on the back of it property prices will increase. In addition, the interest costs will be huge.”

Arron190 added: “We should not be using taxpayers’ money to fund any more of these ludicrous schemes that simply drive up house prices and make developers richer. [Chancellor Jeremy] Hunt should concentrate on stimulating the economy and look for less state intervention, a smaller government and lower taxes.”


The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

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