Mortgages: Controversial Help to Buy to launch this week

David Cameron Gives His Keynote Address At The Conservative Party ConferencDavid Cameron has announced that the second phase of the Government’s controversial Help to Buy scheme will be launched this week, three months earlier than originally planned. The Help to Buy scheme was originally announced earlier this year in George Osborne’s Budget and has been launched in two parts. The first phase provided help to buyers of new homes, by giving them access to a shared equity loan of up to 20% of the purchase price, providing they were able to ...

More housing bubble fears as interest only mortgages return

iStock_000018295400_ExtraSmallHousing bubble fears were further increased earlier this week, as two banks have announced the return of interest-only mortgages. The announcements come just a year after the Financial Services Authority (FSA) branded these mortgages a “ticking time bomb,” with many borrowers having no way of repaying the debt at the end of the term. The two banks in question, Clydesdale and Yorkshire, have confirmed they will introduce a new product, which will allow borrowers to repay only interest for the first three years ...

Who are the winners and losers from Mark Carney’s interest rate announcement?

Autumn Statement 2012 Winners & Losers_istockThe phrase ‘forward guidance’, introduced into the financial dictionary earlier this week by Mark Carney, the new Bank of England Governor, sounds innocuous enough. But for better or worse, it will soon affect each and every one of us over the next few years. First things first, what does ‘forward guidance’ mean? Put simply, the Bank of England’s Monetary Policy Committee (MPC) is tasked with keeping inflation at 2%; not higher, not lower, but at ...

Mortgages: Concern rises over Help to Buy

iStock_000004085541_ExtraSmallJust a few days after Vince Cable, the Government’s Business Secretary, warned the Help to Buy scheme could lead to a housing bubble, a pressure group has raised further concerns. The scheme was announced by George Osborne in his spring budget, with the first part being launched immediately and the second starting in early 2014. However, whilst Help to Buy, along with the Funding for Lending scheme, certainly seems to have a positive impact on the housing market, it has come under criticism from various ...