The housing market has been a source of great interest over many years and that is especially true now, due to the government’s decision to move their ‘help to buy’ scheme three months ahead of schedule.

The Conservatives policy, which is designed to help first time buyers get onto the property ladder a lot quicker and for a fraction of the price, involves taking out a 95% mortgage.

Although this will mean that many peoples locked out of the housing market can finally make the big step from renting to buying, with only having to put down a 5% deposit, there are many critics lining up to attack the scheme.

From a personal view point, I can see that there are clear benefits to being able to only have to save up a 5% deposit instead of a 10% one. However, there is no getting around the fact that, in making mortgages more attainable, many people will begin to look at buying houses that, realistically, are well outside their financial means.

For example, under the ‘help to buy’ scheme, people will be able to buy a home that is worth £600,000, which will no doubt make them feel good for having bought the house of their dreams, but fast come round to bite them when they have to start paying off the mortgage.

There are many people who struggle to pay the mortgage without utilising the scheme, so it goes without saying that even more people will end up in this position.

To better understand your credit rating, and to help tackle the inevitable minefield that applying for the ‘help to buy’ scheme will be, Totally Money is a great source of advice.

There is also the obvious fact that the decision to move the scheme forward is most definitely a political one. Labour has given the Coalition government more than enough reason to pause for thought over the last few months, more so in fact after Ed Miliband’s acclaimed conference speech.

Therefore, in an attempt to keep voters interested, the current government is ‘dealing the goods’ a lot sooner than planned. It could cause no end of problems, and the dreaded housing bubble, in no time at all. As good as it sounds, it’s probably wisest to avoid the ‘help to buy’ unless it’s an absolute necessity.

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