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.”