Lenders must help FTBs
This is the opinion of Galliford Try Homes. The raising of the stamp duty threshold to £250,000, exempting first time buyers from paying the tax on properties for sale up to this price, has been well received by the industry but according to Ian Baker, group managing director for housebuilding at Galliford Try Homes, it is mortgage lenders who now have to add their weight to the affordability crisis.
“Lenders should now look again at their high borrowing criteria and make constructive moves of their own to help this group of willing and able buyers on to the property ladder. It has been left to housebuilders to offer schemes like our own shared equity Easystart option or the Government backed HomeBuy Direct equity loan initiative to stimulate the market for buyers with limited deposits.
“While first-time buyers will undoubtedly benefit from these savings, unless they can secure mortgages with realistic loan to values at competitive interest rates with reasonable arrangement fees, the stimulus could have limited impact.”