The Intermediary: Plans for 99% mortgages apparently scrapped - reaction from brokers:

The Chancellor has reportedly scrapped plans for a 99% mortgage after resistance from the banking community, according to government insiders.

Harps Garcha, Director at Brooklyns Financial said:

"The decision to scrap the 99% mortgage scheme may leave many first-time buyers feeling disheartened, but the reasons behind the move are hardly surprising.

"Affordability challenges for banks, particularly in pricey regions like the South East, coupled with the risk of negative equity for new buyers , made the short term-appeal of such a stimulus difficult to justify.

"While the housing market undoubtedly needs a boost, this scheme could have backfired spectacularly. 

"Instead, policymakers should focus on wider and longer term solutions that tackle underlying issues like housing affordability and supply shortages."

To read the full article, click here.