Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), comments on discussions between the Treasury, home builders and mortgage lenders:
“Today’s announcements will provide a second wind for Help to Buy and put many first time buyers one step closer to achieving their dream of owning a home. The first part of the scheme has already supercharged the housing market and made one of the biggest impacts of any government scheme in recent memory on first time buyers, despite being available to a wider range of borrowers.
“Because deposit requirements are still high, many people will agree with the Chancellor that first time buyers and second steppers are more deserving of support via the new mortgage guarantees than landlords and property investors.
“For part two of the scheme to meet its full potential, we need plenty of lenders to put their weight behind it so that product pricing is competitive and we don’t become over reliant on one or two big high street names. That is why it is so important that the Treasury acts quickly to finalise the scheme so that all lenders are encouraged to participate. ”