A former Chancellor of the Exchequer has expressed
concern that the Government’s Help to Buy scheme could encourage people to take
on more debt than they can manage if – when – interest rates go up. Lord Norman
Lamont warned of the potential dangers of Help to Buy in a keynote economics
speech at the Annual Pensions Conference in London. “My concern is that Help to
Buy may encourage people with 95% mortgages to gear up too much. Banks have to
make the commercial judgement. In a few years when rates rise, after 2016,
according to the Bank of England, it is important that new buyers are able to
continue to service their mortgages," he said. Read more on the Housing
Excellence website.
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