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| Version 0 | Version 1 |
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| Vince Cable warns Help to Buy could create new 'bubble' | Vince Cable warns Help to Buy could create new 'bubble' |
| (about 1 hour later) | |
| A flagship government scheme to revive the housing market could inflate it, Business Secretary Vince Cable warns. | A flagship government scheme to revive the housing market could inflate it, Business Secretary Vince Cable warns. |
| The Help to Buy scheme provides equity loans of up to 20% for buyers of new-build homes in England and will start part-guaranteeing mortgages for buyers across the UK from next year. | |
| "I am worried of the danger of getting into another housing bubble," Mr Cable told the BBC's Andrew Marr Show. | "I am worried of the danger of getting into another housing bubble," Mr Cable told the BBC's Andrew Marr Show. |
| Help to Buy has been credited with boosting first-time buyers this year. | Help to Buy has been credited with boosting first-time buyers this year. |
| But some have warned the government is interfering too much. | But some have warned the government is interfering too much. |
| The first phase of the scheme was launched this year. From January, Help to Buy will be extended to help buyers of existing homes throughout the UK. | The first phase of the scheme was launched this year. From January, Help to Buy will be extended to help buyers of existing homes throughout the UK. |
| Mr Cable said: "The Help to Buy scheme is actually quite complex. We have one part that's already operating, which is providing mortgages against new homes, nobody has questioned that. | Mr Cable said: "The Help to Buy scheme is actually quite complex. We have one part that's already operating, which is providing mortgages against new homes, nobody has questioned that. |
| "The proposal which hasn't yet been implemented, which is providing a guarantee for a limited range of mortgages, could be a problem. It could inflate the market. | "The proposal which hasn't yet been implemented, which is providing a guarantee for a limited range of mortgages, could be a problem. It could inflate the market. |
| "But, if it's properly designed it could be a useful addition." | "But, if it's properly designed it could be a useful addition." |
| The second part of the scheme will allow people to buy with just a 5% deposit, with the government undertaking to act as guarantor for a mortgage for a further 20% of the value in the hope of giving banks greater confidence to lend. | The second part of the scheme will allow people to buy with just a 5% deposit, with the government undertaking to act as guarantor for a mortgage for a further 20% of the value in the hope of giving banks greater confidence to lend. |
| Buyers of properties costing up to £600,000 will be eligible for the assistance. | Buyers of properties costing up to £600,000 will be eligible for the assistance. |
| But foreign buyers with no history of property ownership in the UK, buyers of second homes and buy-to-let landlords will be excluded, Chancellor George Osborne has said. | But foreign buyers with no history of property ownership in the UK, buyers of second homes and buy-to-let landlords will be excluded, Chancellor George Osborne has said. |