FT Advisor: Govt reportedly scraps 99% mortgage scheme after concerns:

Brokers have said the government's proposed 99 per cent mortgage scheme "would have never ended well" following reports the idea has been scrapped. While many brokers acknowledged the need for such a scheme, they thought the proposal wouldn't be effective.

A sentiment was shared by Harps Garcha, Director at Brooklyns Financial, who said that, while the scheme's scrapping may leave many first-time buyers feeling "disheartened", the reasons behind this move are "hardly surprising".

She specified that affordability challenges for banks, particularly in more expensive regions, coupled with the risk of negative equity for new buyers, made the short-term appeal to such a stimulus "difficult to justify".

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