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Definitely the concerns would be raised if the bankers and the high authorities experience any kind of difficulty or danger to the banking sector hence all around you can hear ringing bells. As I have written article that revels the secrets about the scheme some days ago that government has planned to launch the fabulous scheme for the home seekers named Help to Buy scheme. That would provide the excellent opportunity to those who do not have the property anywhere else in the whole world by paying only a small deposit of 5 % of the total value of the property and the remaining 95% would be mortgaged by a lender. Raising some concerns the New Bank of England Deputy Sir Jon Cunliffe said that we should have a keen eye on the scheme and must have a close examination of the customers asking for the help to buy scheme with small deposits. Sir Jon is highly in favor of a close examination and monitoring criteria before and after accepting the mortgage requests from both the borrower who is seeking for a mortgage by only paying a less deposit of 5% and the lender who is paying 95% remaining of the total property value. He also expresses his feelings that he does not think that this entire scenario would create a housing bubble inside the UK. The data from the Office for National Statistics reveals that the house prices are increased dramatically. Alone in London the prices are raised by 9.7% year-on-year in July while in England as a whole they increased by 5.4%. About house prices that are rising gradually, Sir Jon said that the increase in the prices is mainly from the low base and the whole UK is experiencing the price variations. Again denying the speculations, he said that he does not think that the whole bunch of housing prices and the mortgage concerns are too much to be fussy about and it would be resulted so soon that we start saying that our housing industry is creating a bubble. He admits that UK has a fine and a wise history of housing boom and there is always a risk with the industry but he is also in favor of watching it carefully. The chief executive of the Lloyds Banking Group António Horta-Osório forces for boarder reforms. He added that "It is important that planning permits, building authorisations and social housing projects are [liberalised] so that the increase in [mortgage] transactions does not lead to a substantial increase in house prices," He also suggested that the scheme could be focused on the areas outside the London where the house prices are raising quickly. Likewise Sir jon, António is also hopeful that the measurements that they are talking about would not create a housing bubble in UK. An official from UKAR (UK Asset Resolution) Richard Banks, that runs the mortgages of Northern Rock and Bradford & Bingley – said that the rise in house prices can be beneficial for those housekeepers with loans larger than that of their property values. The above mentioned views clearly describe not the controversies attached to the scheme but aimed as a helping scheme for the house seekers and there may be some speculations in the market but the high authorities and the bankers are hopeful about the scheme. About Author: Property investment is a quite difficult decision to make for gaining good returns but without having some expertise in the real estate sector one cannot manage it all. D Iqbal has a wise grip over the real estate matters and hence has written such useful material for the investors from Liverpool to encourage them for Student Property Investment Liverpool If you are quite comfortable and interesting in contacting him then email him at hello@trivelles.com
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Help to buy scheme, Help to buy scheme UK, Property investment, housing investment,
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