The start date of the Government’s proposed Mortgage Indemnity Guarantee Scheme could be unrealistic, according to property services group, Countrywide.
The scheme, which hopes to provide a guarantee for around 100,000 new mortgages for first time buyers purchasing new build properties, up to a 95 per cent LTV, was announced in November as part of the Government’s ‘Laying the Foundations: a housing strategy for England’ and is due to start in the Spring.
Nigel Stockton, Countrywide’s Financial Services Director, commented:
"The Government’s Mortgage Indemnity Guarantee Scheme is positive for the new homes sector and will undoubtedly provide a much needed boost to the market. However, there are no explicit details currently available about how applications under the scheme will be implemented. As a result, it is currently unclear when the scheme will become a reality.
Having spoken to a number of the major lenders over this week, they appear to be awaiting the finer details of the actual application and submission process. In addition, it is yet to determined whether any systems changes are needed, which could further delay the process.
Therefore the likelihood of when buyers will be able to access mortgages backed through the scheme is unclear. With a proposed launch date of March, implementing the scheme within the next 12 weeks seems unrealistic, with the more probable outcome that we begin to see the first few MIG backed mortgages in the 2nd/3rd quarter of the year.
We welcome the opportunity to speak to the government to discuss how the mortgage industry needs to supported to boost activity in the market."
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