Scotland unveils its own Help to Buy scheme Chancellor George Osborne, who earlier this month insisted the scheme is not a "weapon of mass destruction," has this week given the Bank of England the power to curb the scheme if it is having a negative effect on the economy. The Bank's Financial Policy Committee will now review the programme every year, rather than every three years as was originally planned. The Bank will also be able to recommend the Treasury reduce the £600,000 price cap on properties eligible for the scheme, to reduce the impact of a price boom. The first phase of the UK Help to Buy scheme launched in April. It allows those with a 5pc deposit to borrow up to 20 per cent of the value of a new-build home from the Government in the form of a loan that is interest-free for the first five years. The remainder is funded through a mortgage via one of the participating lenders. Borrowers can get much better rates than those normally available to those with just a 5 per cent deposit, as they effectively have a 25pc deposit. The second phase will begin in January 2014. It will be available to first-time buyers and people moving home and for new and existing properties. Borrowers will still need a 5pc deposit, while the lender will be able to buy a guarantee from the Government covering up to 15 per cent of the value of the property. Don't miss: My heart says get Help to Buy. My head says it's complete lunacy Sign up to our weekly email for more on Help to Buy