Ryan Bembridge analyses the plethora of schemes aimed at first-time buyers entering and leaving the dysfunctional mortgage market
London version
The Help to Buy schemes have primarily helped first-time buyers outside the capital since their introduction, prompting the introduction of London Help to Buy in February 2016.
This offers a 40% equity loan scheme rather than 20% to help homeowners deal with London’s inflated house prices.
But property analyst Kate Faulkner isn’t a fan. “You have to take on so much debt to buy a property under that scheme that I think it’s risky.
“One phrase I always use is ‘life does get in the way’ and you could get divorced or sick which makes things worse when taking on such huge debt.”
Peter Williams is also concerned. “Can you imagine how a 40% equity loan in London could increase?” he asks. “£100,000 could become £200,000.
“Good luck! That’s what you’re going to have to find.”
Jeremy Leaf doesn’t think it’s anything to worry about, adding: “I don’t consider Help to Buy to represent a risk in its present form.”
