Protection  

Call for clarity on Help to Buy exit strategy

Mr Mas, president of European mortgage insurance at Genworth, said: “The beginning of this year marked the official start of the second part of the Help to Buy scheme – the mortgage guarantee element – and it is clear it has boosted competition in the mortgage market.”

He added: “The government should start thinking about the exit strategy for the scheme now. We believe private involvement should be gradual and phased in through the life of the current government scheme.”

Mr Mas’s comments followed a poll commissioned by the mortgage insurance provider, which asked MPs for their views on the mortgage guarantee scheme.

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Nearly three-quarters (72 per cent) of MPs were concerned about the effect on taxpayers if the government guarantee were to be called upon significantly.

Some 51 per cent said they supported the involvement of private sector insurance to ensure a well-managed exit.

Adviser view

David Hollingworth, head of communications for London & Country Mortgages in Bath, agreed the government should be considering the exit strategy. “This is a perfectly sensible thing to call for,” he said. “I don’t believe there is a desire on any side for it to be permanent. The question is how the exit should be managed.”