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Deposit should not be barrier to accessing mortgage finance, say MPs

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Three quarters of MPs believe people with a stable income, but without savings to put up a deposit of 10 to 20 per cent, should be able to access to mortgage finance, according to research commissioned by Genworth Financial.

Around 83 per cent per cent of the 150 MPs surveyed believe their constituents need more support to get on the housing ladder, rising to 100 per cent of those with constituents in London.

More than four in five – 84 per cent – of them agreed that a more fluid housing market, stimulated by easy access for first-time buyers, would help the overall financial situation and social mobility of their constituents.

Genworth Financial president for mortgage insurance in Europe Angel Mas says: “The deposit remains the biggest barrier to homeownership in the UK, along with the prudent approach taken by lenders, who are allocating their scarce capital to other segments of the mortgage market.

“The return of high loan-to-value lending is vital if we are to unlock the market for those with a sound credit profile, but who are unable to save for a deposit in the near term.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Should that not read “Public Sector Employees” or have I miised some private sector company that guarntees it’s staff a “stable income” let alone employment. MPs are more out of touch than ever before!”

  2. My partner & I are renting at the moment – we would love to buy but we are having to plan for mid 2013 to give us enough time to save up a reasonable deposit – this will still only be around £20k (a 10% deposit on a £150k home + £5k for fees) and may not be enough for the type of home we want (2/3 bedroom family home). Renting is now cheaper than paying a mortgage – we are looking at around £800 per month on just the mortgage, where you would expect to pay about £650-£750pcm for a 2/3 bedroom house in the area.

    At 25 and 27 we are having to plan years in advance for anything – buying a home, getting married, having children etc. With a joint household income of £48k you would expect us to be able to afford to own a home, get married and have children in the next year or two but this is turning into a 5 year plan due to the excessive cost of everything now days…

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