Grants to help home purchase

INCOME tax credits on mortgage interest in the first few years of buying a home may be replaced with a grant to top up the buyer’s deposit instead.

The idea, which could come in next year, is being looked at by MPs because the existing scheme has not had the intended effect of boosting home acquisition by low-income families.

The current scheme is not linked to income or to being a first-time buyer (unlike the interest-free loan scheme).