Bath are choosing to use Genworth’s answer to Help to Buy, which sits outside the scheme with a selection of high loan to value products.
Genworth said lenders can tailor products to their needs rather than relying on a ‘one size fits all’ approach which is offered through the taxpayer-funded guarantee.
Simon Crone, vice president at Commercial Mortgage Insurance Europe at Genworth, said: “Having Bath Building Society as a new Genworth client is a real coup for the business and by using mortgage insurance it will be able to offer products in this space and benefit from the range of bespoke options we provide.
“There are clearly many differences between our products and Help to Buy and by utilising our products Bath Building Society is sending a clear message that the private market is open for business and can deliver stability and certainty for lenders, not just over the next few years but far beyond the anticipated lifespan of HTB2.”
Given the increased level of competition and product choice seen in the higher loan to value lending bracket since the launch of Help to Buy, Genworth has contacted all lenders either currently active, or looking to be active urging them to review their options.
Dick Jenkins, chief executive of Bath Building Society, said: “We are focused on prudent, responsible lending and at the same time are committed to helping those prospective customers who have small deposit levels to ensure they can fulfil their home-owning aspirations.
“Genworth’s clear and transparent proposition, its experience in this market, financial strength and the level of expertise that will be available to us were particularly persuasive factors in Bath Building Society opting to work with the team.”
