Prime Minister David Cameron announced plans to bring forward the government’s Help to Buy mortgage guarantee scheme, aimed at getting buyers with small deposits onto the housing ladder.
But Magellan Homeloans has called on Cameron to extend assistance to would-be homeowners who are unable to access credit because of recent financial difficulties.
Managing director Matt Gilmour said: “Help to Buy is all well and good for borrowers with clean credit records, but many thousands of homeowners have impaired records as a direct result of the economic downturn.
“The government also needs to extend a helping hand to people who, often through no fault of their own, have suffered financial hardship and now find themselves in a position where it’s very difficult to obtain mainstream mortgage finance.”
Gilmour said these borrowers had been most affected by the recession but if clients could prove they had a clean credit history for the past year they should be given access to finance.
“Many believe that people with an impaired credit record have mismanaged their money and therefore have no right to a mortgage,” he said.
“The truth is, however, that many borrowers suffered as a direct result of circumstances beyond their control and have since worked hard to get their finances back under control. They deserve a second chance and if David Cameron wants to show that he’s a truly caring Prime Minister, then he should ensure all government schemes are as inclusive as possible.”
