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Broker champions shared equity option
14 August 2008 10:30
Shared equity mortgages are a great route onto the property ladder and demand for them should soar in the wake of the credit crunch, one broker has predicted.
Council of Mortgage Lenders data shows that the average first-time buyer (FTB) had to stump up 13 per cent of the cost of their property in June, up from 11 per cent in May, while the volume of mortgages lent to this group fell by 46.4 per cent year-on-year to 18,100.
Click n go Mortgages team leader Hayley Martin has therefore highlighted the value of shared equity mortgages to FTBs, as they do not require them to raise a deposit, which can be quite daunting, while claiming that they only slightly more expensive than renting.
She said that with the liquidity problems afflicting the mortgage sector, these mortgages are becoming more widely known and written about and that her own firm has seen their take-up increase of late.
Ms Martin also sought to dispel the notion that shared equity products are only available to key workers, explaining that while this used to be the case, there is now an extremely good chance of people being accepted onto these schemes regardless of their occupation.
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