The current rules on who qualifies for shared equity schemes and what mortgage lenders can offer need to be changed if the initiative is to have real market impact, the government has been warned.
Stephen Knight, executive chairman of GMAC-RFC, has called for more support for product innovation from the government and stated that while the proposed Homebuy initiative will be able to help up to 40,000 people, potential first time buyers need a scheme that is ten times larger. Speaking at a meeting of the All Party Parliamentary Group on Debt and Personal Finance, Knight has said: “If the project could be freed up from the current rules as to who qualifies, and what lenders can offer, we could achieve real market impact with shared equity.” He added: "We have also argued for borrow...
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