Launched by the Government to simply give the property market a jump-start, it is now felt by many building companies that the scheme may be around for the long haul.
April saw the newly formed Financial Conduct Authority conduct the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review, which in turn led to stricter regulation and lending criteria being imposed. Banks have become reluctant to approve mortgages of 95 percent loan-to-value, which are of course an essential part of the new-build and often first-time buyer market.
Feedback from a housebuilding company executive stated that banks seem averse in lending over 80 percent of a property’s value, which means there is a big gap that is currently being filled with the initiative.
As the Help to Buy scheme has already had its deadline extended once, it is felt it may have to continue, as the industry has shown scepticism over whether or not it can sustain the volume of new housing without the support of the Government initiative.
Ray Boulger from broker John Charcol said:
“There is going to be an ongoing need for some sort of scheme.”
Entering into a mortgage agreement, whether for the first time or as a home mover, can be a particularly daunting event. By seeking the help and advice of a professional who has undertaken and completed the relevant CeMAP training, you can take assurance in the fact that you will receive a clear, transparent service that will make sure the most appropriate package is recommended to you.