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  1. National

Budget homes plan loophole

The Treasury has still not explicitly said it will prevent homeowners from using Government-backed mortgage guarantees to buy second homes, after ITV News exposed the loophole. It is also feared the cost of the scheme could be passed onto borrowers.

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  1. Laura Kuenssberg

Treasury admits mortgage guarantee scheme could be used on second homes

The Chancellor's loan guarantee scheme could prove to be controversial - not just because of the scale of the measures, but because it could be used for mortgages on second homes.

The Treasury did publish a list of eligibility criteria - you can't use it for buy to let or interest only mortgages - but it hasn't excluded the possibility of using the cash for second homes.

We spoke to the Treasury tonight who admitted it probably is the case as things stand. But I suspect they'll want to squeeze down on this pretty quickly when the legislation goes to consultation.

But as it is currently, the Treasury's official documents do not rule out this huge amount of Government cash being used by some people who are rather well-off already wanting to buy a second property.

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