Can mortgage insurance save the first-time buyer market?
Absolutely agree that if we want to help stimulate growth in the economy, then we need to get the housing market active again. I don’t mean seeing prices increasing by silly numbers, but a mechanism that will allow people to actually get on the market and second steppers to be able to make the move. Activity is what is needed.
Lending 95% or dare I say it 100% is not reckless lending, particularly if you are selective as to who you lend to at that level. Every man and his dog berates Northern Rock and the way they lent at high LTVs but at the same time, Alliance & Leics, Scottish Widows, BM and Coventry had similar products but haven’t suffered the same as they were cautious as to who would qualify for those mortgages.
This action won’t see a repeat of the double digit growth in house prices we saw 5-10 years ago, as lenders income requirements now mean more stringent measures are in place to control how much people can borrow.
House prices going forward should now fall back in line with wage increases and as these are negligible then prices won’t get out of control. Bring back the MIG, I have been saying this for 5 years.
Dave Rolleston
18 Mar 2013 | 13:48
Can mortgage insurance save the first-time buyer market?
The other disincentive for FTBs – and I am referring to the honourable would-be property owners is the appalling selfish attitude of lenders who now tier their interest rates according to LTV, a practice that never used to exist!
Baz
18 Mar 2013 | 21:57
New regulator to name and shame those under enforcement
Can someone explain to me how publishing the name of a person or firm under investigation would NOT damage their income? Would you, as a client, be prepared to deal with a firm if you knew they were under investigation by their regulator?
I am all for disclosure but not so sure about this being done before the outcome of a possible appeal has been resolved. Would supporters of this proposal want early disclosure if it was your firm and you were innocent?
Andy Wilson, Andy Wilson Financial Services Ltd
19 Mar 2013 | 13:30
Budget 2013: Help to Buy at a glance
Is it just me but isn’t there a distinct possibility the guarantee scheme is going to bring a proportion of the market to a crashing halt while they wait for Jan 2014 to come around only to find it’s not all it’s cracked up to be after all
Mike
20 Mar 2013 | 16:30
Budget 2013: Osborne reveals MIG-style mortgage guarantee
Although any action to try to stimulate the mortgage market is welcome, measures such as this are frankly “urinating into a stiff breeze” until the wider economic issues are sorted.
This makes for a nice headline or soundbite but the limited impact of similar initiatives in the past makes me doubtful as to the practical effect on our day to day business.
A K Narey
21 Mar 2013 | 09:19
