Lenders warn of Help to Buy mortgage ‘addiction’
Mark my words the policy profiled here presages trouble for the economy more generally and affordable housing in rural areas – we cant continue just to lend money we don’t really have as a nation to each other to buy houses, particularly when we have recapitalised the banks through quantitative easing with money that doesn’t exist. All that will happen is a dangerous house price boom resulting in amongst other things even fewer houses people can afford in rural Britain. This article indicates the mortgages lenders themselves know a storm is acoming – it tells us:
The housing market risks becoming “addicted” to the Government’s flagship Help to Buy scheme unless a clear exit strategy is set out, the Council of Mortgage Lenders’ chairman has warned.
Nigel Terrington said that people “deserve” to be given a vision of what the housing market is going to look like over the next 10 or 20 years, not just short-term fix policies.
He said that Help to Buy must not “morph” into the UK’s version of United States mortgage giant Fannie Mae and a “carefully enunciated, agreed and managed exit strategy” is needed.
The new phase of Help to Buy was launched last month to inject fresh life into the UK housing market by offering state-backed mortgages to aspiring home buyers with deposits as low as 5pc