You are here: Home - News -

MPs’ stark warning on day of Help to Buy launch

by: IFAonline
  • 08/10/2013
  • 0
MPs’ stark warning on day of Help to Buy launch
The government's popular Help to Buy mortgage scheme could threaten financial stability if it is mismanaged, a group of MPs has warned.

The Treasury Select Committee (TSC) said “great care will need to be taken” in how the scheme is run.

Banks have today begun to unveil mortgages which they will offer under the expanded Help to Buy scheme.

RBS, NatWest and Halifax will start taking applications this week and Virgin Money will join from January.

But TSC chairman Andrew Tyrie said it is vital ministers closely scrutinise the scheme’s impact.

“Given the chequered history of government interventions in residential property, great care will need to be taken in both the construction and running of this scheme,” Tyrie (pictured) warned. “Mistakes could distort the housing market or carry threats to financial stability.”

The TSC said the Bank of England must be allowed to put the brakes on Help to Buy at any time if it threatens to cause a housing bubble, rather than being subject to a review once a year. The MPs said they were concerned that the primary effect of the scheme “could be to raise house prices rather than to stimulate new supply”.

The government’s initiative is designed to enable buyers who can afford only small deposits to buy a home. The Prime Minister David Cameron said it would help thousands of people to “put down roots and raise a family”.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Paul Smee headshot CML
CML says watch LTVs rise following Help to Buy detail

The Council of Mortgage Lenders welcomed the Government's detail on the Help to Buy mortgage guarantee scheme.