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British PM David Cameron says would consider changes to mortgage scheme on BoE advise

Tuesday, 20 May 2014 - 1:15pm IST | Agency: Reuters

British Prime Minister David Cameron said on Tuesday he would consider changes to the government's 'Help to Buy' mortgage guarantee scheme if advised to do so by the Bank of England.

The central bank is looking at new measures to control mortgage lending amid a shortage of home building, Governor Mark Carney said at the weekend in his strongest warning to date about the risks of a housing bubble.

"It is absolutely right that we are alert to any dangers and problems," Cameron told BBC radio when asked about recent rises in house prices.

When asked if the government would consider changing the Help to Buy mortgage guarantee scheme to reduce its upper borrowing limit, Cameron said: "Of course. We will consider any changes that are proposed by Mark Carney."

'Help to Buy' allows people to buy property worth up to 600,000 pounds ($1.01 million) with deposits as a low as 5 percent.

($1 = 0.5943 British Pounds)

(Reporting by Belinda Goldsmith, writing by Guy Faulconbridge)

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