The reintroduction of a mortgage indemnity guarantee scheme could prove beneficial for first-time buyers (FTBs) eager to get their foot on the property ladder.
This is according to Andy Pratt, chief operating officer at Alexander Hall – a mortgage broker in the UK that has been in operation since 1992 and provides independent home loan advice – who noted the approach has proved advantageous for property seekers in the past, so there is no reason why it should not act as a workable solution now.
Mr Pratt pointed out the issue has been a hot topic of late, with people discussing the matter at almost every mortgage-related forum he has attended in the last few years.
The industry figure observed: “It provides a certain level of security against a higher level of risk, so there is no reason why it shouldn’t work because it has worked in the past.”
One obstacle that could stand in the way of such a reintroduction is insurance companies that need to be re-engaged to provide the supply of the product, Mr Pratt went on to add.
