George Osborne’s flagship Help to Buy mortgage scheme
could be shot down by Mark Carney in the coming 18 months, top bank analysts
say, as the booming housing market gathers pace. The chancellor wants the
scheme, which supports house buyers with small deposits, to last for three
years. But if the housing market overheats the Bank of England can recommend it
is tweaked or is closed down early – something analysts believe is increasingly
likely. Carney’s Financial Policy Committee (FPC) can use a range of other
macroprudential tools in an effort to calm other parts of the market it also
fears are overheating. Swiss bank UBS expects Carney to call on Osborne to
scrap the scheme within the next 18 months, as well as using other tools. Read
more on the City AM website.
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