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83% of MPs want greater FTB help

  • 10/03/2011
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83% of MPs want greater FTB help
More than eight out of ten MPs believe that first-time buyers needed greater help to get onto the property ladder, new research has shown.

Specialist insurer Genworth Financial revealed that 83% of MPs believe their constituents need more support, rising to 100% of those with constituencies in London.

The study found that 75% of MPs are told by constituents that it is impossible for first-time buyers to get on the housing ladder, with those based in London facing the most difficulty.

As a result, 77% of MPs said that home ownership for those that can afford it was an important policy goal.

The feeling was particularly strong among Conservative MPs, with 92% encouraging home ownership, compared to 67% of MPs in London.

Genworth found that 84% of the MPs questioned said their constituents’ overall  financial situation and social mobility would be helped by a more fluid housing market, stimulated by easier access for first-time buyers.

In addition, 75% said that people with a stable income, but without the savings for a 10% to 20% deposit, should have access to mortgage finance as long as repayments were affordable.

Angel Mas, president of mortgage insurance for Genworth Financial in Europe, said: “The return of high LTV lending is vital if we are to unlock the market for those with a sound credit profile, but who are unable to save for a deposit in the near term.

“Lenders can participate safely in the high LTV segment by transferring default risk to a specialist insurer. This model creates additional safeguards for the overall system as insurers will only accept this risk if appropriate lending criteria are applied and monitored.”

He added: “We welcome the renewed focus on first-time buyers and call upon policymakers to create the right incentives, through reduced capital requirements for those lenders taking a prudent approach by mitigating their default risk with mortgage insurance.”

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