A new mortgage indemnity scheme introduced by the Conservative-Liberal Democrat coalition has the capacity to spur on the government’s agenda for growth, it has been claimed.
The Council of Mortgage Lenders noted that although the details of the initiative have yet to be fully released, many lenders have already put their names forward to take part in the project.
According to the body, the support of the coalition will serve to bolster the scale of a similar proposal already being worked on by itself and the Home Builders Federation.
The CML stated the mortgage indemnity scheme is a step in the right direction and could prove successful in solving some of the major problems currently facing the housing market.
“We will therefore continue to work with members, builders, the government and others to try to ensure it delivers the best possible outcome,” the group added.
However, the CML – whose members account for 94 per cent of residential mortgage lending in the UK – claimed confirmation that the stamp duty exemption currently enjoyed by first-time buyers is to end next March goes against the moves outlined in the government’s housing strategy.
