CML leader in Help to Buy warning

Thu, 07 Nov 2013

CML leader in Help to Buy warning
The head of the Council of Mortgage Lenders (CML) has warned that the UK needs avoid becoming "addicted" to Help to Buy deals.

Nigel Terrington described the government initiative as a "short-term fix" and has warned that there needs to be an exit strategy for the home loan subsidy scheme.

Mr Terrington said: "It should be a time-limited intervention to correct what is seen by the government as a temporary failure in the market to provide high loan-to-value mortgages in quantity."

He added that Help to Buy should not be seen as a permanent feature and instead be approached as a temporary measure.

Since the scheme's second phase launch last month, critics have raised concerns that it could result in an inflated increase in house prices.

Unless more properties are made available to meet demand, it is feared that Help to Buy could directly lead to a housing bubble.

According to the Halifax, prices have risen by nearly seven per cent in the last year and 0.7 per cent within the last month.

Mr Terrington added that it was vital to find a balance between "short-term profitability" and "long-term sustainability".
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