Regulations ‘stifling’ shared equity market - Mortgages - News - Moneyfacts

News

Regulations ‘stifling’ shared equity market

Regulations ‘stifling’ shared equity market

Category: Mortgages

Updated: 07/09/2012
First Published: 07/09/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Regulatory regimes are holding back buyers, according to Nationwide Building Society's head of mortgage strategy and policy.

Addressing a forum in London yesterday, Andrew Baddeley-Chappell claimed that current regulations were deterring borrowers from shared equity, whereby buyers need to
fund at least 70% of the loan via a mortgage or savings funds. The remainder is provided by the Government or home builders, who keep their share of the home until it is sold.


Baddeley-Chappell said shared equity and shared ownership borrowers are "high-risk" for lenders.


"They are complex models with a combination of potentially higher risk borrowers with more complex needs," he said.


His comments follow the Government's pledge that it would inject an additional £280 million into its FirstBuy lending scheme. The scheme was launched last year to assist first-time buyers with taking their first steps onto the property ladder.

What Next?

Find the best mortgage for you - Compare Mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close