A mortgage broker has called on the Labour government to consolidate its first-time buyer support schemes into a cohesive strategy. Sarah Thompson, group financial services director at Mortgage Scout, part of LRG, stated that while individual measures have seen progress, the schemes are not yet functioning as an integrated system.
Thompson's call comes ahead of next week's Labour Party conference. She referenced recent changes to mortgage lending rules, the permanent Mortgage Guarantee Scheme, and a proposed First-Time Buyer ISA currently under government consideration. Thompson expressed a wish for a clear strategy that connects the different stages of becoming a first-time buyer.
Thompson also suggested that the First-Time Buyer ISA's final design should reflect market conditions when a saver enters the housing market. She added that any property price limit should account for regional differences and adjust with market movements, and that support offered should make a meaningful contribution towards deposit requirements.
These comments follow Lloyds research indicating that almost three out of five first-time buyers believe existing debt will prevent their mortgage approval. Additionally, more than a third of first-time buyers think a 20% deposit is essential. Propertymark's Ian Harris has stated that affordability, rather than misunderstanding, is keeping first-time buyers out of the market.