Bank of England powerless to stop Help to Buy

Fri, 29 Nov 2013

Bank of England powerless to stop Help to Buy
The Bank of England does not have the power to veto the Help to Buy mortgage scheme, according to its governor Mark Carney.

While feedback has generally been positive about the government-funded mortgage scheme, some fear it will cause house prices to increase sharply and spark a housing bubble.

Responding to a letter he had received from Andrew Tyrie, the chairman of the Treasury select committee of MPs, Mr Carney said: "The Financial Planning Committee (FPC) has no power to require [the Treasury] to vary the terms of, or close, the Help to Buy scheme."

He also added that "issues related to home ownership are the responsibility of the government and parliament".

However, the FPC is not completely detached from Help to Buy; it has been asked to judge the impact of the scheme each year. From September 2014, it will determine how the mortgage scheme has changed the overall financial stability of the country.

The scheme, designed to help aspirant first-time buyers onto the property ladder, started its second phase in October and offers 20 per cent equity loans.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch