World news
House prices post strongest annual growth in nearly three years
Osborne warns over 'badly-timed' Tobin tax
Bank of England says no to more QE
ECB holds interest rates on hopes of recovery
Brussels dismisses 'plainly wrong' IMF criticism over Greece
China-EU trade war a risk for UK growth
Hard-line ECB washes hands of jobless crisis, sees no 'Japanese' deflation
If the Labour Party won't spend, what's the point of it?
EUs unaccountability poses a danger to global economy
Roger Bootle looks to sell Capital Economics
Businesses with bright ideas 'more likely to face funding hurdles'
Saudi prince sues Forbes over size of fortune
Sir Mervyn King attacks EU financial transaction tax
Bank raises growth forecast in rare boost for economy
Heroic Spain is damned if it does, and damned if it doesn't
Foreign-born workers account for 50pc of rise in employment
Recovery hopes as Japan economy expands again
Exiting QE could 'undermine the recovery', IMF warns
One and two cent coins could disappear under EU plans
Japan storms back on weak yen but Asia trembles
There may be no halting this tax juggernaut
EU referendum row a 'distraction' from growth
Coalition minister claims he can see 'green shoots' of recovery
BoE's Weale douses Carney stimulus hopes
Sir Mervyn King attacks Osborne plan to boost housing market
Sir Mervyn King, the outgoing governor of the Bank of England, has warned that the Government's plan to revive the housing market should not become permanent.

He warned that there "was no place in the long run" for George Osborne's Help to Buy scheme, which will guarantee up to 15 per cent of mortgages on properties worth up to £600,000 from next January.

The Bank's governor fears that the scheme could leave taxpayers exposed to billions of pounds worth of private mortgage debt.

In an interview broadcast this morning on Sky Newss Murnaghan programme Sir Mervyn said: "This scheme is a little too close for comfort to a general scheme to guarantee mortgages.

"We had a very healthy mortgage market with competing lenders attracting borrowers before the crisis, and we need to get back to that healthy mortgage market.

"We do not want what the United States have, which is a government-guaranteed mortgage market - and they are desperately trying to find a way out of that position."

"So, we mustn't let this scheme turn into a permanent scheme."

He added: "When is the right time to terminate it will depend on economic conditions at the time."

Bank governors seldom criticise Government policy so publicly. Sir Mervyn is set to be replaced by the Canadian Mark Carney later this summer.

The Treasury said Help to Buy would "support home buyers and home building".

A spokesman said: "The mortgage guarantee scheme will provide much needed help for people who can't afford a big deposit to get a mortgage."

Help to Buy, which is expected to last for three years, will ensure new or existing homeowners need to raise a deposit of just 5 per cent of the value of a property they want to buy.

They can also borrow up to a further 20 per cent of the property's value from the Government interest-free. The largest loan available under Help to Buy will be £120,000.

Last month the Commons' Treasury Select Committee warned that the Government will come under "immense" pressure to extend Help to Buy when it is set to expire in 2017.

Britain puts brake on slide in European car sales
MPs consider inquiry into London listing rules
Markets are on a crazy, sugar-fuelled journey
Help to Buy puts mortgage market at risk, says King
Sir Mervyn King attacks Osborne plan to boost housing market
UK exporters look beyond sluggish EU
BIS and IMF attacks on QE 'deeply misguided'
Germans blame eurozone crisis for Eurovision flop
'Economic case to stay in EU is overwhelming'
Inflation 'may hamper Carney, warns ITEM Club
Japan upgrades growth outlook
Paul Tucker risks row over bank rescue plans
EU arms second front in China trade war with Huawei probe
Attacks on tax avoidance 'could damage Britain'
Japanese growth could be 'sugar high'
Britain is already in trouble without the IMF making it worse
UK exit from EU would be 'loss/loss scenario', warns Goldman Sachs
Demanding clients get small firms investing at last
UK inflation: sharp fall eases household squeeze
Nigel Farage's biggest problem is Ukip doesn't do details
What next for inflation and interest rates?
Europe faces lost decade, says Mark Carney
Stocks are booming, so beware the bust
HMRC 'errors' cost country £5bn, say MPs
Visit Statistics