The loans may not be as beneficial as organisers hoped.
21 September 2009
A new personal loan scheme aimed at those looking for their first mortgage may be of little help, it has been suggested.
Dragons'' Den star James Caan has teamed up with Look4AProperty.com to offer an interest-free loan for first-time buyers.
It allows them to borrow up to £50,000 to help cover the cost of stamp duty and legal fees, but PricedOut.org.uk spokesperson Katy John said it may not achieve much success.
She claimed the initiative would not help first-time buyers as much as Caan and his partners may think.
"Whilst it is important that people … are able to borrow enough to buy what is within their means, artificial measures to prop the market itself up are not at all helpful for first-time buyers," Ms John explained.
The loans are only available to those buying a home through the Look4AProperty.com website and can be paid off over two or three years.
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