The UK government's consideration of 99% mortgages to assist first-time buyers, a move considered by Chancellor Rishi Sunak, has sparked widespread concern among experts, commentators, and the public. Critics, including financial journalist Martin Lewis, argue that such a policy could lead to a repeat of the 2007-2008 financial crisis due to irresponsible lending practices and overheat the housing market. There are also fears that the proposal, associated with 1% deposit mortgages, could risk financial stability. The Telegraph has reported that the Bank of England may require lenders to increase their capital buffers to limit these risks. Concerns have been raised about the potential for this policy, which Chancellor Jeremy Hunt has been warned about, to further inflate house prices, already outpacing wage growth and not matched by sufficient housebuilding to meet the government's targets.
✍️"Tories’ last gasp effort to win young votes stands to inflate house prices even further" | Writes @benjaminmarlow 📈House prices outweigh wage growth 📉Housebuilding falls far below government target Read the full comment here 👇 https://t.co/tpMooEuAj0
What 1% deposit mortgages could mean for first-time buyers... and the housing market https://t.co/APpX1kIM5I https://t.co/NFp40eQrGq
The 99% mortgage explained: could they work for London’s first-time buyers? https://t.co/UgP2r0Fjtk
UK Mortgages With 1% Deposit Are ‘Risk To Financial Stability’ - The Telegraph https://t.co/9QQrqZPMRg
🔴 EXCLUSIVE: Jeremy Hunt’s 99% mortgage plan risks undermining financial stability and could prompt the Bank of England to make lenders increase their capital buffers to limit risks Read more ⤵️ https://t.co/F5lhroHBtM
Here's why 99% mortgages would be a disaster for the housing market https://t.co/16hIHSuHrb
“I’d fix the Lifetime ISA before you start launching new schemes.” @MartinSLewis accuses Jeremy Hunt of pumping the housing market in a “self defeating way” for electoral gain. Listen live with @JPonPolitics from 5pm 📻 https://t.co/nAZQs8eWDl
🏠 Help to Buy revival will only fuel house price inflation, Hunt warned. Read the full article 👇 https://t.co/wi1Ko1IU7o
Mortgage costs, interest rates and inflation soared in the Lawson boom. Jeremy Hunt should be careful what he wishes for.
🗞️'Ministers’ 99% mortgage idea could overheat UK housing market, say experts'🗞️ @mrstevenallen, @CressidaWetton, and @LewisSchaffer share their thoughts on a story from The Guardian. https://t.co/SYcWC6MNHc
🗞️ ‘Surge in modern slavery in social care sector since visa rules eased’🗞️ @mrstevenallen, @CressidaWetton, and @LewisSchaffer respond to an article in The Guardian. https://t.co/nBVNdZfoeU
'It's going to be a complete carbon copy of 2007-2008 fiasco.' Rishi Sunak is considering 99% mortgages to help first-time buyers. Caller Robin tells @carolvorders this is reminiscent of the 'irresponsible lending that caused the crash we know and hate to remember.' https://t.co/oLj5m4PyN8