OPEN MARKET HOMEBUY UPDATE BY CTAB 5th JULY 2007
July 5, 2007
The very latest Information on the New System
More choice for Open Market HomeBuy mortgages – competition announced in Budget
More choice for Open Market HomeBuy mortgages
21 March 2007 Ref: 33/07
A new competition to increase the number of lenders who will provide shared equity mortgages and help more people on low incomes onto the housing ladder was announced by the Chancellor in the Budget today (Wednesday 21 March).
The competition aims to provide a wider choice of shared equity mortgages for homebuyers through the Open Market HomeBuy scheme. The scheme currently provides equity loans, funded by the government and mortgage lenders, which boost the purchasing power of the homebuyer.
The Housing Corporation today published an early invitation to mortgage lenders, investors and housing associations to participate so they can prepare competitive products, consult with the government and give feedback for the development of the competition.
The invitation makes clear the Housing Corporation would welcome the development of an affordable and sustainable equity loan for households who are only able to purchase around a 50-70% share.
Housing Minister, Yvette Cooper, said,
“Rising house prices can put real pressure on first time buyers. That is why it is so important to provide extra help for people to get on the housing ladder through shared equity mortgages.
“By inviting more mortgage lenders and others to join Open Market HomeBuy, homebuyers will get even more financial choices from a greater range of providers when looking for a home to call their own.”
By providing affordable housing products in partnership with mortgage lenders the government is able to help even more people who, without the scheme, would not be able to buy a home they can afford. The new competition will help the Housing Corporation assist even more households into home ownership, and bringing closer the target of helping 160,000 households to become home owners between 2005 and 2010.
The competition will aim to be attractive to a wide range of organisations, including mortgage lenders, institutional investors and housing associations. It offers an opportunity for the market to engage with the Housing Corporation to create innovative and viable financial products to deliver affordable home ownership. CB Richard Ellis, the real estate advisor, has been selected by the Housing Corporation to market, launch and evaluate this competition.
Housing Corporation Chief Executive, Jon Rouse, said,
“Over 85% of households aspire to be home owners, but affordability stops some groups in society – particularly those on low incomes - from achieving their aspirations. The Shared Equity Task Force report sets a challenge for the Corporation to build further on the partnerships we already have with the private sector.
“The competition which the Chancellor has announced today will enable us find a wide range of institutional, lender and housing partners to fund innovative and effective solutions to help more people into affordable home ownership.”
Ends.
Notes to Editors
1) For further press information, please contact Katy Nicholson on 020 7393 2118.
2) Subject to the spending review timetable, the competition will launch in Summer 2007. In the
SEARCH ENGINE OPTIMISATION FORUMS
July 3, 2007
FIRST TIME BUYERS
July 3, 2007
This just came in from the Yorkshire Building Society
Lenders must be feeling the pinch!!
YBS launches new 115% LTV mortgage
The Yorkshire Building Society (YBS) have announced the introduction of a new no-deposit mortgage.
The new offer would allow a maximum of a full 15 per cent above the property value to be mortgaged.
Ian Bullock, sales and marketing director of YBS, said that the current interest rate environment had made it “increasingly difficult for young people to get on the housing ladder”.
He also claimed that the new 115 per cent loan-to-value deal would allow first-time buyers to cover extra costs such as legal fees and stamp duty:
Mr Bullock acknowledged, however, that such mortgages generally prove a higher risk for lenders.
He added: “Whilst there is undoubted demand for this type of lending we feel that we have to demonstrate to customers that we are acting responsibly in ensuring that they do not over commit.”
The new mortgage is also aimed at those homebuyers who do not qualify for the Government Homebuy scheme, which was introduced last year to provide financial help to keyworkers and other target groups to get on the property ladder.
