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Mayor of London pledges to expand shared equity scheme

Mayor of London Boris Johnson has pledged to expand a shared equity scheme helping first-time buyers in London.

Visiting the offices of the Coreco Group this morning to discuss apprenticeships, Johnson pledged his support for home ownership.

The Greater London Authority runs the First Steps scheme alongside housing providers, L&Q and Metropolitan Home Ownership working on behalf the Homes and Communities Agency.

The scheme aims to help first-time buyers take an equity stake in their home and get their first foot on the ladder in private or social housing.

Speaking to Money Marketing’s sister publication Mortgage Strategy Johnson, says: “First Steps has helped about 25,000 first time buyers to get a share of the value of their property.

“They have not been able to buy the whole house necessarily but they have been able to take a share. I believe if people want a share in their own home then that is a good thing and we should try to encourage it. The scheme is going to be expanded and encouraged.”

Johnson was paying a visit to the mortgage broker to encourage financial services firms to take on apprenticeships in the way the Coreco Group has done.

He was accompanied by deputy mayor Kit Malthouse and both spoke to staff about the state of the mortgage market and how businesses can take on apprentices.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Gavin, London 30th May 2012 at 3:24 pm

    Shared equity schemes are a con designed to keep property prices inflated. I don’t think the Mayor understands the scheme as it leads to instant negative equity and repossessions. After 5 or 10 years the equity loan part must be payed back by then your property would of fallen in value, your mortgage rates will be higher and you will have to pay a rapidly rising loan costs on top.

    2013 with be the year when the first major shared equity nightmares will come out, its sub prime all over again.

    Sorry Borris but this is a bad idea.

  2. More shared ownership is the last thing anyone needs. When will senior political figures accept that this is not the solution to the problem of high-cost housing?

  3. Shared equity simply means house prices are unaffordable. They need to be affordable, rather than just suckering people into buying over-priced homes. It will all end in tears.

  4. Another scheme purely to benefit building developers and to stop the property bubble from deflating to near affordable prices. First time buyers will be trapped in negative equity if and when they need to move on to a bigger home at a later date ;(

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