A NEW homebuyers’ scheme will be as flexible as possible, according to Housing minister Dave Jones.

His department is seeking expressions of interest from businesses to develop and operate a new scheme, but said that adaptability was critical in light of the credit crunch.

The new venture will replace the existing home loans scheme, which will continue but be closed to new borrowers. ‘The home loans scheme was overtaken by what was happening in the private sector and it became clear that it was offering much better deals than we were.

‘We need to be far more creative and imaginative with this new scheme, and because of the credit crunch there is no better time to launch it.’

Deputy Jones envisaged that the initiative would be similar to the existing scheme in many ways, but would be much more varied. This would include the possibility of longer mortgage deals, less expensive repayments in the first few years but increasing over time, and fewer obstacles as to who might be considered for a mortgage.