Advertisement
Advertisement
Advertisement
Well, George Osborne's Help to Buy scheme has been knocking about since 2013, with the government offering a loan of 20 percent of the property cost, provided the buyer can cough up 5 percent as a deposit. George recently launched a special London edition of the Help to Buy scheme, where the government offered 40 percent of the property, in response to London's far-greater house prices. However, economist Ed Stansfield recently pointed out that in order to qualify for a property in London – given current average asking prices – you'd need to be earning in excess of £64,000. Once again, it's a leg up for those already halfway there.WILL I EVER OWN A HOUSE?Probably not, no. These mortgage schemes are basically a way for the government and big financial institutions to say: give up, anyone without inherited wealth; we're not even going to try to help you any more.That said, Barclays' no deposit mortgage isn't necessarily a bad thing. For some people it's obviously helpful. Parents' 10 percent deposit will be paid back by the bank with interest – something that's unlikely if they'd lent the money directly to their kids – and obviously it's a much easier way for them to buy than requiring the full lump sum on a normal mortgage.Rather, the no deposit scheme – and the thin wedge of people it applies to – instead indicates a sorry state of affairs. A helping hand for people who shouldn't need it in the first place.
Advertisement