House deposit plans meet with cynicism


Conscious of the struggle faced by first-time buyers to raise enough capital for a deposit, Nick Clegg has unveiled his plans to allow pensioners to use their savings as a guarantee for a relative’s deposit, with the money only called upon if the borrower defaults on their mortgage repayments.

However, Chief Executive of the National Association of Pension funds, Joanne Segars, said: “A pension can only be spent once, and this policy could end up leaving retirees out of pocket. The UK already has a serious problem with people saving too little for their old age.”

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