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

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Regulations ‘stifling’ shared equity market

Regulations ‘stifling’ shared equity market

Category: Mortgages

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

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.