Mortgage news - November 2013

PUBLISHED: 14:49 29 November 2013 | UPDATED: 14:49 29 November 2013

This month Greg May, Director of Romans Mortgage Services, comments on the early start for the Help to Buy (part 2) scheme.

“Consumers have grown accustomed to a limited supply of 95% mortgages ever since the recession, so the news of a bumper delivery ahead of schedule will rightly cause a wave of excitement. The Help to Buy mortgage guarantee has a clear purpose and will answer a real need by giving options to first time buyers and those homeowners who have seen their equity eroded and been unable to make their next move. It is undoubtedly a welcome initiative from a consumer point of view.

“A key ambition over the next three years must be to re-establish 95% lending as part of a balanced and normally functioning market. With the government behind it, the market looks set for continued growth which will hopefully prompt a greater level of overall transactions and more willingness from lenders to get behind those buyers with limited deposits.

“Clearly there will be a flurry of activity as lenders bring their implementation and delivery plans forwards, once the final details of the scheme are confirmed. The important thing is for consumers to get clear, consistent messages about the mortgage guarantees, how they work and where they are available. Rather than becoming an overnight sensation, it would be in everyone’s best interests if the scheme is managed in a steady and sustainable way.”

For further information call: 01344 753 268 or visit: www.romans.co.uk/Mortgages.

Remember, your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.

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