To watch the video click here.
Prospective homeowners will be able to use the Government’s subsidised
mortgage scheme from as early as next week after the Coalition
decided to bring the launch date forward by three months.
On the even of the Conservative party conference in Manchester, David Cameron
revealed that the state-backed lenders, Royal Bank of Scotland and Lloyds
Banking Group, would be offering deals under the Help-to-Buy scheme from
next week instead of January.
It will initially be available under the Nat West, RBS and Halifax brands. A
Tory spokesman said that other banks are expected to take part over time.
The second phase of the controversial scheme will help people buy a home worth
up to £600,000 with just a 5pc deposit. The Government will guarantee the
next 15pc of the loan for a fee, reducing the banks’ risk of loss so they
can offer cheaper mortgages to higher-risk customers.
The scheme will be available for three years on up to £130bn of mortgage
lending.
Critics have warned that the guarantees will inflate a dangerous housing
bubble at a time when the property market is already showing signs of
recovery. Citing analysis by the Bank of England, the Prime Minister
countered on BBC’s Andrew Marr show that the market was only recovering and
there was no sign of a bubble.
Mr Cameron added that if he didn't introduce the scheme, then "it will only be people with rich parents who can help then with the deposit who can help them on the housing ladder. That's not fair, it's not right, it's not the sort of country I want to live in and that's why it's important we bring this forward."
Video courtesy BBC One's The Andrew Marr Show
Article Source: http://www.telegraph.co.uk/news/politics/david-cameron/10342400/David-Cameron-there-is-no-housing-bubble.html
Mr Cameron added that if he didn't introduce the scheme, then "it will only be people with rich parents who can help then with the deposit who can help them on the housing ladder. That's not fair, it's not right, it's not the sort of country I want to live in and that's why it's important we bring this forward."
Video courtesy BBC One's The Andrew Marr Show
Article Source: http://www.telegraph.co.uk/news/politics/david-cameron/10342400/David-Cameron-there-is-no-housing-bubble.html
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