PM brings forward Help To Buy

David Cameron has confirmed that he plans to bring forward a scheme of state-backed mortgages to help increase home ownership to next week. The so-called Help To Buy scheme had not been due for another three months.

Help To Buy scheme is eye-catching but controversial

by - Political Correspondent

I think the fact that the Labour conference did go down well - especially that plan to freeze energy bills - could have something to do with this Help To Buy scheme being rushed forward.

Both policies are eye-catching, populist and also quite controversial.

There are plenty of voices, not least the Business Secretary Vince Cable, who are concerned about the possibility of this causing a housing bubble.

But as the election gets closer, the Conservatives are less concerned about keeping the Coalition relationship sweet.

Earlier today, the Prime Minister also poured cold water all over the Liberal Democrats' plan for a Mansion Tax.

The Prime Minister knows he has to address concerns at the cost of living at this conference and he thinks helping people who are struggling to buy their own homes might just do that.

PM dons hard hat to promote Help to Buy scheme

David Cameron has promoted the Help to Buy scheme on Twitter with a picture of himself with two new homeowners, who he said will be moved in by Christmas thanks to the mortgage assistance.

The Prime Minister tweeted that the scheme "makes sure people like Emily and James can afford a home". Credit: Twitter / @David_Cameron

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PM: Help to Buy will stop aspirations being 'trashed'

Prime Minister David Cameron has said that bringing forward the state-backed Help to Buy scheme is good news as it will stop people's home buying aspirations being "trashed".

He told the BBC's Andrew Marr show: "As Prime Minister I'm not going to stand back while people's aspirations to get on the housing ladder, to own their own flat, to own their own home are being trashed.

"That's why we need to act", he added.

Courtesy of BBC's The Andrew Marr Show

Osborne: Banks signed up for Help to Buy scheme

Chancellor George Osborne has announced on Twitter that several banks have backed the Government's state-backed Help to Buy mortgage scheme.

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We are determined to help people buy their own home. So we're bringing forward the Help to Buy mortgage guarantee #forhardworkingpeople

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Halifax, RBS and NatWest all confirm they are taking part, offering new 95% Help to Buy mortgages

Read: Your views of Help to Buy scheme

MPs react to Cameron's Help To Buy scheme move

MPs have had a mixed reaction to the Prime Minister's decision to bring forward the state-backed Help To Buy scheme to next week:

Skills Minister Matthew Hancock:

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Proud that Help to Buy will support people to buy first home. Last year only 220,000 first time buyers, compared to 405,000 before the crash

Labour MP Jonathan Reynolds disagreed:

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@theresecoffey @matthancockmp Can either of you cite an authoritative non-Conservative source who thinks Help to Buy is a good idea?

Conservative MP for Mid Bedford Nadine Dorries wrote:

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Thrilled with help to buy 95% mortgage - that's how most of us bought first house - now scrap HS2 + build houses to balance supply/ demand

Ed Balls: PM should be investing in affordable homes

David Cameron should bring forward investment to build more affordable homes instead of introducing the Help To Buy scheme, the shadow chancellor said today, after the Prime Minister confirmed that it would be introduced next week.

Shadow chancellor Ed Balls. Credit: PA

Ed Balls said: "Unless David Cameron acts now to build more affordable homes, as Labour has urged, then soaring prices risk making it even harder for first time buyers to get on the housing ladder.

"The Bank of England should immediately review the details of the scheme now before they are set in stone, rather than wait a year. "

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Your view: PM brings forward Help To Buy scheme

State-backed mortgages to help increase home ownership will be introduced next week - three months earlier than planned, David Cameron has confirmed.

We asked ITV News' Facebook followers what they thought of the move and here is a few of their views:

5% is still a lot though. We have a lot of new builds being built near us and for a home that would suit our needs, we'd still need a large deposit. Surely mortgages should be based on what you can afford to pay back.

– Carly Michelle Jolley

A good idea if helps us all who are in private renting where it is expensive.

– Ann Faramus

Dodgy ground. More people with mortgages that if interest rates shot up suddenly couldn't afford to meet monthly payments.

– Adam Radlett

How does Help To Buy support first time home buyers?

David Cameron has announced he will bring forward the state-backed Help To Buy scheme to next week, three months earlier than planned.

What does this mean?

  • The mortgage guarantees will allow buyers to acquire a newly built home or an existing property worth up to £600,000 with a deposit of only 5%.
  • The scheme aims to boost mortgage availability by reducing the risk for lenders because the Government takes on the risk of default when it guarantees a proportion of a loan.
  • It will see the state offer guarantees totalling up to £12 billion on £130 billion of high loan-to-value mortgage lending.

Read: What is the 'Help to Buy' housing scheme?

PM 'won't stand by' while people cannot afford homes

David Cameron has said he will not "stand by" as young people fail to get on to the housing ladder. The Prime Minister told The Sun that he would bring the state-backed Help To Buy scheme forward to next week.

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I won't stand by while hardworking people can't afford a home. That's why I'm bringing forward Help to Buy scheme. More in papers and Marr.

Cameron: 'Need is now' for Help To Buy scheme

Speaking to The Sun, David Cameron has said there is an immediate "need" to bring forward state-backed mortgages through the Help To Buy scheme.

I am impatient to help young people get on the housing ladder.

The need is now. I have always wanted this to come in and frankly the earlier the better.

What concerns me is that you can't buy a house or a flat even if you are doing okay, you have got decent job prospects and good earnings.

I am not prepared to be a Prime Minister of a country with caps on aspiration.

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