First-time buyer news

A&L dumps Northern Ireland Co-ownership

2 February 2008

Mortgage Introducer has been told by an intermediary in the province that the lender had removed its products without offering any reason.

The source said: “A&L has pulled out of co-ownership but you have to ask why as it is one of the biggest growth areas in the Northern Irish market. It just said it was going and offered no reason to brokers.”

In a statement, A&L said the move had come after a review of the lender’s operations.

It said: ‘Following a strategic review, we have decided to cease lending to new borrowers through the Northern Ireland Co-ownership Housing Association (NICHA) scheme. This is consistent with our previous approach to other such schemes across the rest of the UK, and will not affect existing customers.”

With affordability one of the main issues currently facing the Northern Irish market, schemes to help people get onto the property ladder have become key weapons in broker’s armoury.

However, Neil Johnson, head of PR and policy at the Building Societies Association, admitted that shared equity scheme were tough for lenders to administer.

“There is clearly a demand for this sort of scheme as property prices are so high. This is especially the case in Northern Ireland, where prices have been increasing so rapidly in the last few years. However, there may be high demand but it is very difficult for lenders to operate in this type of market.”