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Government expects lenders to increase MMC finance options

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  • 18/09/2019
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Government expects lenders to increase MMC finance options
The government has said that it is confident its modern methods of construction (MMC) scheme, which it aims to launch by the end of the year, will result in more lenders offering mortgages for such properties.

 

The MMC scheme ‒ which will set out a single set of standards for warranty providers ‒ is currently being developed by a working group put together by the government, and includes lenders, valuers and other stakeholders involved in the MMC industry.

Responding to a report on MMC by the Housing, Communities and Local Government Committee, the government emphasised that the working group has made “good progress” towards developing a “single assurance platform for assessing all new technologies to guarantee their acceptability for mortgages and warranties” which it claimed will be launched by the end of the year.

And it emphasised that this should result in a greater range of financial option for those who want to borrow in order to purchase an MMC property.

The response said: “We are convinced that this scheme will make a major contribution towards increasing lender confidence in MMC and increase their access to mortgages on these type of homes, and are therefore very keen to ensure it is launched as soon as possible.”

The government also noted within its response that it does not believe any one type of MMC technology will provide the answer to the housing shortage.

It stated: “All types may have a part to play and what is suitable and viable on one site may not be appropriate on another. It is important that all types of MMC are accredited, insurable and mortgageable.”

 

 

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