Andrew Bridgen, senior economist for Fathom Consulting, said: “Help to Buy is a reckless scheme that uses public money to incentivise the banks to lend precisely to those individuals who should not be offered credit.
“Had we been asked to design a policy that would guarantee maximum damage to the UK’s long-term growth prospects and its fragile credit rating, this would be it.”
Adviser view
Paul Good, mortgage adviser for Joslin Rhodes in Stockton-on-Tees, said: “Help to Buy will bump up the average house value once the market picks up again. Moreover, if people come to remortgage in the future, they are tied to the mortgage company that approved them and are totally at their whim.”
