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CML’s Smee calls for Help to Buy to be axed after 3 years

Council of Mortgage Lenders director general Paul Smee says he sees no justification in Help to Buy being extended beyond its planned end point in three years’ time.

Giving evidence to MPs at a Treasury select committee today, Smee called on the Government to reveal its exit strategy for Help to Buy and ensure the scheme does not run beyond 2017, when the mortgage guarantee element of the scheme comes to an end.

When asked how the Government might taper the scheme, Smee suggested it could gradually increase the scheme’s fees, lower the maximum LTV and decrease the maximum loan size. He added this would avoid a “cliff-edge” scenario when the scheme ends. 

Smee said: “The taper should be determined soon. I am not saying when it should start, but before three years so that the scheme can close after three years, which I believe is the intention. I don’t think the [presence of] the scheme can be justified beyond the three-year point.”

Last week, Mortgage Strategy reported that economists had called for Help to Buy to be watered down in order to cool the market, after new data revealed house prices had risen over 7 per cent in the three months to November.



Media Spotlight: Top books of the year

Managing stress at work Stephen Evans-Howe Do threats and a major hair-drying from your boss improve your performance or turn you into a jibbering wreck? If it is the latter then Managing Stress at Work by Stephen Evans-Howe is the book for you although it is more of a practical guide than something to whiz […]

Christmas financial pressure

Why do we put ourselves under so much financial pressure at Xmas?

According to the Office for National Statistics, UK retail sales during the run up to Christmas rose by 0.3 per cent this year. It does not sound a lot but every year the figure increases. As expectations for the latest gadgets or games console grow, so do stress levels in parents desperate not to disappoint. […]

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Infographic — health cash plans 2014

Health Shield has strengthened its position in the cash plan market, according to the latest Laing & Buisson report, increasing its market share by income from £27m in 2012 to £29m in 2013. The Health Cover UK Market Report 2014 revealed that the non-profit-making Friendly Society was the only provider in the top four to have increased its market share by income over the past year. Health Shield was also the only cash plan provider in the top four to have increased its market share by income every year for the previous five years. This infographic presents the figures.


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