The Help to Buy scheme will not be open to buy-to-let investors, people wanting to buy holiday homes, or foreign purchasers.
At prime minister’s question time yesterday, David Cameron said: “This scheme is for people’s only home. It will have a mechanism in place to make sure that is the case.
“The second thing is that in order to take part in the scheme you have to have a credit record in this country, so it won’t help foreign buyers.”
The first part of Help to Buy is in operation, whereby purchasers of new homes only can use a shared equity scheme to have access to 95% mortgages.
The second part of Help to Buy is a mortgage indemnity guarantee scheme, open to purchasers of all types of homes who want a 95% mortgage. This is due to start in January.
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