Lenders’ concerns over new Help to Buy
As part of its Help to Buy initiative, the Government will open a scheme from January which lets people buy a property with a deposit of only five per cent of the purchase price. But it has been reported that lenders are privately warning they plan to stick to their current lending criteria and would only offer such large mortgages on much cheaper properties.
When contacted by the Yorkshire Post, Yorkshire Bank, and Yorkshire, Leeds and Skipton building societies said they have not yet decided whether they will participate in the scheme, the full details of which have not yet been disclosed. Kris Brewster, head of products, at Skipton Building Society, said: “We are naturally keen to support any ideas which could help to further free up lending to those who need it.
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Hide Ad“We are however also keen to ensure the scheme provides a level playing field for mutuals and there are still a number of unanswered questions we need to clarify, such as the specific implications for capital requirements and the scheme associated fees.”
A Yorkshire Building Society spokesman said: “Any move by the Government aimed at helping people get on, or move up, the property ladder should be welcomed.”