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Housing: Low Incomes

Volume 476: debated on Monday 19 May 2008

To ask the Secretary of State for Communities and Local Government for what reasons the outcome of the shared-equity competition was restricted to a single mortgage lender. (201813)

It is not the case that the Housing Corporation’s National Affordable Housing Programme (2008-11) Open Market HomeBuy products are restricted to a single mortgage lender.

There are two products available providing equity loans of up to 50 per cent. enabling individuals to purchase a home on the open market. Purchasers through MyChoice HomeBuy can select a mortgage from participating lenders and purchasers through Ownhome can choose from the full range of Co-op mortgage products, and can re- mortgage with another qualifying lending institution, in accordance with the terms of the initial mortgage agreement.

I recently met with the Council of Mortgage Lenders who assured me that they will continue to support the availability of products compatible with shared equity schemes and of their commitment to ensuring the market remained open and competitive for first-time buyers, within the constraints of the wider financial market environment.