Government Brazens Out Critics by Entertaining Applications Three Months Earlier

RBS-Lloyds-BankingCritics of the Help to Buy initiative of the government have recently been confronted by it. The government declared that applications would from this week be welcomed by it for the loan guarantees.

As per the findings, the scheme's second phase is formed by the loan guarantees.

The acceptance of the applications would happen three months prior to the planned time.

It was Chancellor George Osborne, who announced the Help to Buy scheme in his Budget 2013. The scheme, reportedly, was to be launched in two parts i. e. in April 2013 and in January next year, respectively.

It is being said that the start in January 2014 is a hint to the availability of the guarantees to the lenders for loans. They would be able to buy any property of up to £600,000. Also, they could deal with nearly 20% of losses in the default event.

The scheme's first phase included equity loans so that people could get help in stepping on the property ladder. Since, available mortgages had low loan-to-values.

"Right now it remains unclear exactly what the scheme details and specifics are for lenders, and in that regard precisely, who will participate other than RBS and Lloyds Banking Group", said Legal and General Mortgage Club's managing director, Ben Thompson.