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The ‘Help-to-Buy’ Scheme – will stage two create a house price bubble? - 8th October 2013

This week sees the launch of the second stage of the Government’s ‘help to buy’ scheme for property purchasers. This second stage has been brought forward by 3 months from its originally planned start date of next January. The scheme sees the Government guaranteeing up to 15% of a mortgage thus allowing lenders to offer mortgages to up to 95% of loan-to-value. The Government’s guarantee reduces the risk to the lenders of such high loan-to-value deals. The scheme is available for all purchases of up to £600,000.

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