View more on these topics

Govt confirms Help to Buy will close at end of year

FW UKBritainWestminster450w

The Government has confirmed it will end the Help to Buy 2 scheme at the end of the year, according to the Telegraph.

The H2B2 scheme was launched in January 2014 as the Government’s remedy for a sluggish high-loan-to-value market.

Lenders could buy a guarantee from the Government to cover any losses on 80-90 per cent LTV loans, should the borrower default.

The closure of the scheme was confirmed in a letter from Chancellor Philip Hammond to Bank of England governor Mark Carney.

Hammond said that Help to Buy had achieved its aims as more than 30 lenders were now lending outside the scheme.

He said: “The mortgage market has become less reliant on the scheme as confidence has returned.

“There are now 30 lenders offering 90-95 per cent loans outside the scheme. This reflects the fact that the scheme was introduced with a specific purpose that has now been successfully achieved and, as such, I can confirm that it will close to new loans at he end of 2016 as planned. I will inform participating lenders.”

The Help to Buy Isa and Help to Buy equity loan schemes will continue.

Recommended

4

Is Help to Buy helping the borrowers it was meant for?

Mortgage experts have called for Help to Buy to be overhauled and say the scheme may not be helping the would-be buyers it was intended for. The Help to Buy equity loan scheme, launched in April 2013, sees the Government lend up to 20 per cent of the value of a new-build home to buyers […]

Home-House-Monopoly-Money-Property-700x450.jpg

Advisers shut out from Help to Buy over fraud risks

Mortgage brokers have expressed frustration at a clampdown by the Homes and Communities Agency which effectively cuts them out of the loop when advising clients on the Help to Buy equity loan scheme. The Help to Buy equity loan scheme allows buyers of new build homes to put down a 5 per cent deposit, with […]

George-Osborne-sips-from-coffee-cup-700.jpg

Help to Buy 2 ‘operating at just 13% of capacity’

Help to Buy 2 is operating at just over a tenth of its capacity, according to new research by mortgage insurer Genworth. Chancellor George Osborne pledged the scheme could enable up to £130bn of lending over three years, equal to £43.3bn a year. However, Genworth’s analysis shows the scheme supported £5.7bn in 2014, just 13 […]

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment