Regional housebuilder comments… David Cameron\u2019s announcement that the new \u2018Help to buy\u2019 scheme has been brought forward by three months has divided opinion amongst builders and financial institutions, however one Midlands builder is backing his decision all the way. Steve Midgley, Managing Director of Fairgrove Homes, a family business based in the East Midlands explains why he thinks it\u2019s a good idea: \u201c95% mortgages are not new, in fact they have been the norm for many years and there are many who started out on the housing ladder by buying a first home with a 95% mortgage. It\u2019s not unusual for people to stretch themselves when moving house, but as time goes on the mortgage stays around the same and generally incomes rise so the mortgage becomes a smaller part of the family outgoings. \u201cSecondly as David Cameron said on Andrew Marr\u2019s programme there are thousands of people who can afford the mortgage repayments but cannot currently raise a 20% deposit. What’s more there are plenty more wanting to upsize but unable to sell their existing house as their potential buyers cannot raise the deposit required. \u201cEssentially what the government is going to provide is a mortgage guarantee for the difference between an 80% and 95% mortgage. This used to be a product which was available in the financial and insurance markets but since the collapse of the banks it hasn’t been available, so Help to Buy Phase 2 is about restoring a normal property market not about creating a bubble. \u201cHouse prices have shown an increase by 0.5% during September, according to Hometrack, which is good news for home owners but not such good news for those who are desperate to buy their first home or who want to move to a slightly bigger property as their family grows. Borrowers will now be seen as less of a risk as the Government will guarantee up to 15% of a loan, which will help those at all levels of the housing market.\u201d \u201cAt Fairgrove Homes we generally build houses for first and second time movers . We can offer them Help to Buy on the new house, but we are unable to offer a Part Exchange as well as Help to Buy so we rely on them being able to sell their existing house, which is why Help to Buy Phase 2 will be key to uplifting our sales and getting the market moving more quickly.\u201d As Royal Bank of Scotland, Lloyds, Natwest and Halifax are ready to move forward with the scheme, it\u2019s looking as though there will be a quick uptake which will act as a catalyst to improving the housing market which can only be good news for all of us.<\/p>\n
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