MortgagesMay 2 2013

Third of homeowners back shared equity

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ByMarc Shoffman

The poll by housing specialist Castle Trust showed 37 per cent of mortgage customers believed shared equity products would ease the burden on homebuyers.

Sean Oldfield, chief executive of the Castle Trust, said 79 per cent of homebuyers wanted lenders to offer more creative ways to make homeownership easier, and 46 per cent would recommend their lender to a friend if they provided these innovative mortgage products.

Mr Oldfield said: “There is clearly strong demand for more innovation in the mortgage market. Given the government’s recent endorsement of shared equity through the launch of Help to Buy, the partnership mortgage model is very much in the spotlight.”

This poll came after Ian McGrail, managing director of Edinburgh-based mortgage adviser First Mortgage, said more advisers and clients should consider family equity loans to help first-time buyers onto the mortgage market.

He said this arrangement meant parents would be eligible to get their money back when the child sold their first home through a simple Minute of Agreement.

Adviser view

Dan Clayden, director of Devon-based IFA firm Clayden Associates, said: “Anything that helps first-time buyers get on the property ladder is good. Property is an emotive purchase. There is demand for shared ownership, but in an ideal world, buyers would like products that just required a lower deposit.”