Help to Buy Mortgage Guarantee scheme fails to meet Tory hopes

Mon, 10 Aug 2015

Help to Buy Mortgage Guarantee scheme fails to meet Tory hopes
The original Help to Buy scheme was bolstered at the beginning of 2014 by the initiation of the Help to Buy Mortgage Guarantee scheme, sometimes known as Help to Buy 2 (HtB2), but this little brother has not performed anywhere near as well as George Osborne wanted his pet scheme to.

In an attempt to bolster the number of house sales, the Help to Buy Mortgage Guarantee helps lenders to offer mortgages with lower deposits by promising to pick up the bill if borrowers default on their mortgage.

The scheme was supposed to see the scheme help 118,000 first time buyers become homeowners, which in turn was supposed to bring prices down in the housing market.

However, only 47,000 home sales have been involved in HtB2.

The Shadow Housing minister, Emma Reynolds, said: "At a time when many people are struggling to get on the housing ladder this is disappointing news.

"David Cameron needs to take action to tackle the growing housing crisis by getting the homes we need built."

64 borrowers on the scheme are reportedly in arrears with their mortgage payments, while a further six have defaulted completely.

With so much controversy surrounding the schemes, with people arguing that it is inflating the prices of homes for everyone or that non-first time buyers are using it to get discounts on overly expensive homes, one thing that seems certain is that the rate of house building hasn't been boosted to the point where 'generation rent' have been able to buy their own home.

Mark Littlewood of the Institute of Economic Affairs added: "What we need is planning liberalisation to allow more building and reduce housing costs for ordinary people."
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