Lack of funding for mortgage scheme 'bad news for FTBs'

Date:Friday 15th May 2009
Author: Susanna Kavka

A lack of funding for the government's MyChoice HomeBuy mortgage scheme is bad news for first-time buyers (FTBs), it has been suggested.

The initiative is a low-cost homeownership scheme that enables consumers to choose and buy a home on the open market with the assistance of a flexible equity loan.

However, its popularity has resulted in some local authorities facing a shortage of funds.

According to Helen Adams, managing director at property website First Rung Now, this shortfall is a "huge problem" for FTBs.

She added: "One of the few opportunities for FTBs is the HomeBuy schemes. They are really reliant on them as a way forward."

The expert went on to say that FTBs are currently struggling to get together the large deposits required by lenders to secure mortgages.

Recently, the Department for Communities and Local Government released a statement announcing that it intended to inject further cash into the MyChoice HomeBuy programme.