Home ownership schemes 'just one step in the right direction'

Posted: 12 Mar 2009 10:17:28 GMT

The proliferation of schemes aimed at allowing first-time buyers to enter the marketplace is a welcome step in the right direction but will be far less successful without aid from mortgage lenders, the Council of Mortgage Lenders (CML) has suggested.

According to the CML, low-cost schemes are a positive step but without potential homeowners being able to secure a mortgage, the success of such schemes will be severely limited.

As such, the most effective action possible would be from mortgage lenders freeing up more cash for first-time buyers.

"The government, housing associations and developers are all keen to promote low-cost home-ownership," said the CML.

"But in order to make low-cost home-ownership work more effectively, we need reforms to encourage lender participation - including a narrower range of simplified schemes."



© Houseladder Ltd