Friday, March 23, 2012
"New scheme will allow buyers to buy £500k homes with just FIVE PER CENT deposit"
I frequently wonder if we ever learn anything.
Apparently, in the U.K., they have NOT.
Government action is no substitute for the free market...
Apparently, in the U.K., they have NOT.
Government action is no substitute for the free market...
In the U.K. Daily Mail, Julian Gavaghan recently reported on the new plan:
"Tens of thousands of people could be helped to buy newly-built homes worth up to £500,000 after the Government said it would use £1billion of taxpayers’ money to ensure they get mortgages with just a 5 per cent deposit.
Prime Minister David Cameron today launched a scheme that is designed to guarantee risky mortgages for all home buyers in a bid to kickstart the flagging property market.
The move heralds the return of 5 per cent deposits rather than the 20 per cent typically demanded by lenders since the credit crunch. It could save buyers £34,000 on the average house.
Under the NewBuy scheme, which is open to aspiring as well as actual home owners, the Government will stump up 5.5 per cent of the value of a mortgage on a home worth up to £500,000."
