You are here: Home - News -

Help to Buy equity loans to be restricted

by:
  • 29/03/2017
  • 0
Help to Buy equity loans to be restricted
Communities secretary Sajid Javid has said he will restrict the use of Help to buy Equity Loans to only new-build properties on “acceptable terms”.

Javid announced the move speaking at the Home Builders Federation policy conference where he also called the housing market “broken” and highlighted problems with new-build properties for which there was “no excuse”.

Highlighting the often unnecessary and poor use of leaseholds by house builders, Javid said he was prepared to take action to force the market to change.

“The last thing I want to do is tie the industry up in more red tape at a time when supply is already so far short of demand,” he said.

“But as a government committed to building a fairer society, I don’t see how we can look the other way while these practically feudal practices persist.

“So I will look to ensure Help to Buy equity loans are only used to support new-build houses on acceptable terms.

“This will send a serious message to the building industry: if you want the government to help you build and sell homes, you have to sell them on fair terms. And that’s what all this is ultimately about – helping people find homes,” he added.

The Department for Communities and Local Government has not yet confirmed to Mortgage Solutions what the acceptable terms will be.

Last month brokers warned that the financial welfare of Help to Buy equity loan homeowners was already being put at risk by a shambolic remortgage market, with a lack of product choice, high fees and poor service.

There are 0 Comment(s)

You may also be interested in

  • RT @KeystonePF: We are getting ready for the @mortgagesols Buy to Let Market Forum next week, our BDM's will be on hand to discuss all thin…
  • RT @DanielleDennis9: There are only two weeks left to get your nominations in for #BMA2019 - vote now for your industry stars to make it a…
  • RT @montysblog: Jokers! Exacerbating the Mortgage Prisoner problem! Treasury sells 66,000 UKAR mortgages to inactive lender Citi - Mortgage…

Read previous post:
two people shaking hands
West One Loans partners with Black Book Finance

Bridging finance lender West One Loans has teamed up with Black Book Finance to promote its proposition to mortgage intermediaries.

Close