Why key worker mortgages should be a last resort

The Government's latest idea to get public sector workers on to the property is the Open Market Homebuy Scheme. It might sound good, but could it be yet another contributor to the housing bubble?

We've had shared ownership, interest-only mortgages and inter-generational mortgages. Now this week the Government is dipping its toes a little deeper into the pool of innovative ideas on how to get first-time buyers off the rental breadline and on to the property ladder. The Open Market Homebuy Scheme will allow public sector "key workers" for example, nurses and teachers to take out a mortgage for 75% of a property's value from one of its participating lenders. The remaining 25% of the value is split equally between the lender and the Government as a top-up loan. Does this sound good to you?

Key Worker Mortgages: restrictions and costs

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.