Taxpayer to bear mortgage risks of first-time buyers

Prime minister David Cameron and his deputy, Nick Clegg, will unveil proposals to help first-time buyers of new homes by carrying part of the risk of their mortgages, according to the Daily Telegraph. The mortgage guarantee, the first time such a scheme has been attempted in the UK, will result in lenders providing loans with significantly lower deposits than the 20% or more that is typically demanded. Taxpayers could be liable for losses in the event that a home is repossessed, however. The government also propose subsidising the construction of 16,000 homes by giving £400m of tax...