CML back NewBuy MIG scheme launch
The Council of Mortgage Lenders are backing the NewBuy MIG scheme launched by the Government.
Paul Smee who is the director general at the CML commented saying that said the scheme could help those credit-worthy mortgage borrowers waiting for a low deposit mortgage deal.
He added that the NewBuy MIG scheme is positive news for potential home-buyers and the wider economy.
He went on to advise that buyers need to understand fully high LTV implications. He has said that the CML will therefore support the initiative with information to help those considering the scheme decide whether NewBuy is the way to go.
Lenders have no plans to relax their affordability criteria under the scheme. However, the scheme is designed to help those able to afford monthly repayments, who do not have a large deposit buy a property sooner than previously possible.
The CML have said that the NewBuy scheme could increase new housing stock which should increase construction sector employment. It will enable mortgage lenders to lend larger amounts without risk and will enable buyers who can afford the repayments but not the previous high deposits required to buy a home.
Smee added the NewBuy MIG scheme could contribute to both housing supply and add to the country's economic growth as well as provide the opportunity for many creditworthy home-buyers to buy a new house.
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