Mortgage Advice Bureau comments on today’s Help to Buy equity loan figures (DCLG)

Andy Frankish, New Homes Director at Mortgage Advice Bureau (MAB), comments on today’s DCLG figures and lenders’ changes to their Help to Buy equity loan offer:

“While the majority of Help to Buy equity loan sales are to first time buyers, ‘second steppers’ have a definite need for products to help them access the new build market. There is no suggestion whatsoever that Nationwide and Halifax have adjusted their lending criteria for equity loans because of risk-related issues. By opting to focus on the first time buyer market for now, they have created the chance for other lenders to take on a greater role in providing Help to Buy equity loans to home movers and cement their market position.

“It is also a perfect opportunity for Nationwide and Halifax to consider offering Help to Buy mortgage guarantee products on new builds and add to the options available to second steppers, as well as first time buyers. We need to do all we can to encourage interest in new build homes if we are to galvanise homebuilders, who rely on buyers being able to access mortgage finance.

“With 2,283 equity loan sales in May alone – compared with a monthly average of 1,630 since the scheme began – Help to Buy 1 is continuing to build up a head of steam and efforts must focus on helping consumers to get the most from the scheme. The big developers have each committed to ramping up production of new homes and the more lenders can support this by offering new build products, the better.”