Firstly, the scheme could potentially further inflate housing prices. By offering more lenient mortgage conditions, housing demand may increase, leading to price hikes. This could result in greater economic pressure for young people who have yet to purchase homes.

Secondly, the mortgage scheme carries potential risks. If the economy experiences turmoil, buyers may face increased debt risks, while falling house prices could also leave buyers in distress.

Yopa CEO, Frankie Finch, stated that this policy could potentially trap an entire generation of first-time buyers in expensive repayment plans, increasing the risk of default. Furthermore, the market may not be able to withstand this pressure, leading to continued price escalation, making it even more challenging for future buyers.

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According to Yopa's analysis, based on the average house price for UK first-time buyers, buyers using a 99% mortgage would only need to pay a relatively low deposit but would have to bear a high mortgage amount. Considering current mortgage rates, buyers' monthly repayments would also be relatively high.

Overall, canceling the 99% mortgage scheme may help avoid potential economic risks and provide a more stable and sustainable buying environment for future homeowners. This decision could help maintain stability in the real estate market and reduce the risk for buyers facing financial issues.

When formulating similar policies, the government should exercise greater caution, balancing supply and demand dynamics to avoid excessive stimulation of price increases and ensuring that buyers can bear the burden of mortgage pressures. Additionally, the government should consider the long-term implications to establish a healthier and more sustainable real estate market and provide better homebuying conditions for the general population.