Shared equity scheme welcomed
NOTTINGHAM Building Society reacted positively to the Chancellor's announcement of a package of measures to help housebuilders and homebuyers.
The Government will make £3.5 billion available through shared equity loans where house buyers find five per cent of the deposit and the Government loans a further 20 per cent, which is interest-free for the first five years and can be repaid when the property is sold.
David Marlow, chief executive of The Nottingham, said: "I think the shared equity scheme is great news for housebuilders and new home purchasers. It builds on the existing First Buy scheme. We think it will go down very positively, particularly with second movers who are trying to trade up the housing ladder."
The Government also announced support for up to £130 billion of mortgage lending through a guarantee scheme.
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Mr Marlow said: "These guarantees could in theory replace insurance we already take out on mortgages, but only if it works out cheaper than that insurance."
He added: "I think the Chancellor is in a very difficult place. He is probably keeping his powder dry until 2014, when he begins the run-in to the next election."