The Bank of England has told the government that the Help to Buy Mortgage Guarantee Scheme is no longer needed.
The scheme, which allows lenders to offer loans to people offering a deposit as low as five per cent thanks to government support, is set to be closed at the end of the year following a decline in usage.
In a Financial Policy Committee (FPC) review of the Help to Buy Mortgage Guarantee Scheme, it was revealed that the scheme accounted for only three per cent of total mortgage lending in the first quarter of the year compared to six per cent in 2014.