Oona King: I’d help the low-paid get home loans as Mayor

Labour mayoral hopeful Oona King set out plans today to help low-paid Londoners on to the property ladder.

The "mayor's mortgage" scheme could support thousands of would-be homeowners who do not earn enough to qualify for a loan on their own.

Under her plans, they would be able to use the Greater London Authority as a guarantor for loans from a credit union or bank.

Property prices in the capital are recovering after a dip and the average price of a home is already beyond the reach of many.

The former MP said: "It's fast becoming the case that you have to be rich or very rich to buy property in most parts of London.

"When so many flats cost over £250,000, people on regular salaries find it hard to get on the housing ladder. I don't want London becoming a ghetto for the wealthy."

She said the scheme would help those earning less than £30,000, but with a stable income. As a public body the GLA cannot lend money to Londoners. Ms King's campaign team said the rules did not forbid entering into an arrangement with a financial services provider to support borrowers.