The mortgage adviser was one of four finalists who presented their proposals at the CML annual conference on Tuesday, and won with his idea of a ‘Building Bond’ that would help first-time buyers to save, and provide funding for new development.
Would-be buyers would be able to use the bond to make regular savings towards a deposit through a “save as you earn” option, also allowing parents to save for their children. Bonds would be underwritten by local and central governments and indexed to property prices rather than interest rates. The bond would be transferable through local authorities which means savers could relocate and access deposit funding in other areas.
Funds created by Building Bonds could also be used to pay start-up construction costs for local community building developments.
“Bond holders would gain preferential access to the new housing developments that are financed with bond funds”, said Humphrey. “Lenders would be able to identify savers who are potential house buyers and future mortgage customers.”
Savers would have to hold the bond for at least a year and the indexation bonus would only be paid on maturity and if the proceeds were used to fund a mortgage deposit.
Essex-based Humphrey began his career in banking 15 years ago and retrained as a mortgage adviser in 2007. The finalists presented a proposal based on the theme: “If lenders want to help my generation, they should…”
Fellow finalists Freddie Nelson and Sarah Freidlander, of Bank of Ireland UK, presented a proposal for an online platform or banking app linked to a savings account that would enable savers to track progress towards their mortgage deposit and work out when they might become home owners.
Ester Theobald, marketing assistant at Market Harborough Building Society, proposed an app targeted at young people that would allow users to synch all their financial information “under one roof” to provide a comprehensive overview of their financial profile.
Dan Whittaker, risk manager at Nationwide Building Society, presented a proposal for a rent to buy development that would use a tenant’s record of successful rent payments to advance a mortgage of up to 100% of the property value if the loan had similar repayments.
This is the second CML Rising Stars challenge. Last year’s winner Michael Rhoades, of Leeds Building Society, served as a judge along with Clydesdale Bank’s head of mortgages Caroline Graham, CML chairman Moray McDonald and Nationwide Building Society’s director of mortgages and savings Richard Napier.
