UK PM Cameron implements Home to Buy Scheme three months earlier than scheduled
In a move critics say is reminiscent the 2007 financial crisis, British Prime MInister David Cameron announced last Saturday the introduction of a mortgage guarantee scheme. The program would help people complete the purchase of their homes, and the implementation of the program is three months earlier than its scheduled release.
In a statement before the conference of the Conservative Party, PM Cameron declared, "I won't stand while hardworking people can't afford a home. That's why I'm bringing forward 'Help to Buy' scheme."
According to Cameron, the scheme would offer guarantees for 95% mortgages for homes worth GBP600,000 or USD967,400. The plan would start next week instead of its original launch date of January 2014.
Many critics of the scheme have said that this would only pushing the UK market to a housing bubble, as this program backs mortgages.
Home prices increased at their highest rate in more than three years for the month of September. In London, according to data from the Housing Ministry, prices have increased by nearly 10% in the past 12 months but other areas though have yet to register an increase.