Writing for the trade body’s News and Views section of its website, the CML’s communications manager Bernard Clarke made 10 recommendations to boost the sector for lenders, government and housing associations.
The Council of Mortgage Lenders has urged mortgage lenders to reconsider their attitudes towards shared ownership.
Writing for the trade body’s News and Views section of its website, the CML’s communications manager Bernard Clarke made 10 recommendations to boost the sector for lenders, government and housing associations.
He wrote: “Lenders might have to re-consider outdated perceptions of shared ownership, and look more carefully at the real evidence on arrears and default.
“Lenders who did not provide shared ownership mortgages were more likely to see them as higher risk… despite a lack of clear evidence.”
Clarke told local authorise to stop putting conditions on the resale of properties – for example preventing buyers from purchasing further shares in the property – which he said leads to lenders turning down applications.
He advised the government to give shared ownership a “marketing boost” to help the public understand the sector and debunk misconceptions about eligibility. Such misconceptions include who is liable for property repairs and maintenance.
He also called for a government guide for lenders, brokers and solicitors inform of the options available for consumers as well as legal and leasing issues.
Clarke concluded: “Just like Cinderella, perhaps shared ownership will get a happy ending after all.”
