Housing boost for 'key workers'

Extra help for up to 20,000 key workers looking to get on the property ladder is on offer from Monday.

This sounds good doesn't it? Well, the figures do:

The government cited the example of a public sector worker earning £35,000 a year.
The worker would be typically entitled to a mortgage of £122,500, with the 25% HomeBuy scheme loan on top they could afford a property worth £160,000.

What you should note at this point, is the salary - £35,000 a year in the public sector. I wonder which sector of the 'public' has £35,000. You'd be pushing it to have a JOINT income of £35,000 in todays employment climate.

How it works is this....

Say the property is £100,000 (I know, ludicrous, but it'll help the numbers sink in!)

The HomeBuy Scheme loan would give you £25,000. So you would still be required to find the other 75% (£75,000) yourself, either with a deposit and standard mortgage or as a lump sum.

So away you go, and get your mortgage sorted and you're sorted. But don't forget, you'll start paying ADDITIONAL INTEREST because after 5 years, you have to start paying interest on the £25,000 provided by the HomeBuy Scheme.

And if you happen to sell your house within 5 years, the governement will want their £25,000 back PLUS this 25% loan will be interest free for the first five years but if the property is sold the government and lender will be entitled to a share in any increase in its value.

Mmmm, wonder what that 'share' percentage will be eh?