Help To Buy One Home Only

Help To Buy One Home Only.

Prime Minister David Cameron answered questions on the new Help to Buy Scheme at the House of Commons.  Addressing concerns over numerous complaints and worries of the Help to Buy scheme David Cameron stated that new rules would be put in place to stop people using the scheme for second homes.

When the scheme was first made public in March there were many worries by Labour over this scheme being abused and allowing for the rich to take out mortgages. The Help to Buy scheme allows for a equity release loan for newly built homes.

Under this scheme a mortgage indemnity will be guaranteed starting January 2014. This indemnity will offer up to 15% of the purchase price, and the buyers depositing between 5 and 15%.

Our View

It makes total sense to only offer "Help to Buy Scheme" on a main home purchase. 

We suggest though there is a hidden agenda here in that confidence must be rebuilt back into UK property which will in turn drive prices up and mean that banks has lower and lower levels of toxic debt. Is it a false economy though.