MP's fear for first-time home buyers' market
State-backed mortgages risk undermining first-time buyers getting on the housing ladder, a Westcountry MP has warned.
Andrew George, Liberal Democrat MP for St Ives, wants ministers to target their support for the "intermediate market", namely shared equity, shared ownership and similar homes.
His comments come as Britain's state-backed lenders yesterday braced themselves for a flood of interest as a £12 billion scheme helping homebuyers obtain mortgages worth up to 95% of property values is launched by the Government.
The new phase of the controversial Help to Buy scheme will see up to 15% of a property's value guaranteed by taxpayers, in return for a fee from the lender.
Buy one get one free on main course and specials excludes fillet steaks and beef Wellington
Must book to qualify 01209 860332 and present voucher on arrival
Mon- Thur 6-9pm
Contact: 01209 700617
Valid until: Saturday, December 21 2013
Taxpayer-backed Royal Bank of Scotland and its subsidiary NatWest immediately set out mortgage deals under the scheme.
But Mr George said: "The Government's scheme may only further inflate the lower end of the market, making the situation worse for erstwhile first-time buyers. Whereas shared ownership and shared equity schemes often struggle because lenders don't like them.
"Extending the Government guarantee to this sector would remove an important impediment from a market which is especially important in areas like Cornwall where the first rung on the full housing market is often far out of reach of local people on local wages.
"Offering a guarantee to lenders in the intermediate market would help Cornwall construct a new lower rung on the housing ladder and help thousands of local families into the housing market. Otherwise I fear our families will lose out."