Under the home ownership schemes launched by Advantage Home Loans, Halifax, Yorkshire Building Society and Bank of Scotland, borrowers will be able to take out a mortgage based on 75 per cent of the property price, with the further 25 per cent split between the lender and government.
However, a broker, who wished to remain anonymous, said: “The home ownership schemes that have been launched appear to be well designed, but brokers don’t know enough about them. There is a ribbon of acceptability with this set of products, because it has the government’s backing, but there needs to be more information released about it, both to brokers and to potential borrowers.”
He added: “The deals look to be excellent and well structured. We have to seriously consider home ownership schemes in association with the lenders and government as an option for first-time buyers, but I don’t think there is enough information about the offers out there.”
However, Tanya Jackson, media relations manager at Yorkshire Building Society, said: “I think there is sufficient information out there, for consumers and the industry. The scheme launched two weeks ago and we will be completing our first deal, hopefully by the end of the month. Completion will take a little longer than other mortgages, because it is a two-phased process. But we have had interest in the scheme and it is a positive step for the industry”
