First Time Buyer Mortgages Get Government Lift

15th of February, 2011 Bookmark and Share
UK lenders, insurers, consumer groups, local councils, industry experts and politicians are to attend a Government led Housing Summit to look at the plight of first time buyers. The summit will consider the array of problems and key difficulties faced by applicants seeking first time buyer mortgages.

The summit will also debate ways to increase the availability of First Time Buyer mortgages and will include a session on what new and innovative mortgage products could assist this section of the market. There has been suggestions of radical schemes allowing parents to provide a greater level of support to their children when entering into home ownership – such as Hitachi’s loan proposition and Lloyds Lend a Hand scheme

Local approaches to the problem are also on the agenda, with new and creative ways being mooted such as the role mortgage insurance companies could play to support lending to first time buyers.

Grant Shapps the Government Housing Minister has indicated that the he wishes to “avoid pulling up the housing ladder and cutting off a whole generation of young people who want to buy their own home.

The average age of a first time buyer is now 37, and it is estimated there are 1.4 million people who would like to buy their own home but who are unable to do so in the present climate, given the restrictions on credit and the requirement for significant deposits. Many first time buyers feel displaced from the housing market and this could store up future social concerns in latter years if a proportion of the UK population becomes disenfranchised from the house buying process. The Government has indicated it intends to take action.
Rob Killeen