First time home buyer news: Mortgage providers 'likely' to commit to Homebuy

22-Jun-2006

First time buyers may see more mortgage providers commit to the government's Homebuy scheme as its success is proven, according to experts.

Launched earlier this year, Homebuy helps first time buyers onto the first rung of the property ladder by providing access to affordable homes.

However, the scheme has come under criticism as a lack of participating mortgage lenders could have an impact on its success.

Nevertheless, the National Housing Association (NHA) notes that the initiative is in its early days and lenders are likely to commit in the future.

A spokesperson for the NHA said: "Mortgage providers generally need to check that the scheme is viable for them before committing to it.

"A couple have already come on board, but what we could see happening over the next few years if Homebuy takes off is that more come on board once the success of it has been proven."

Homebuy is based on the shared ownership model, which allows first time buyers to purchase a share of their property and pay subsidised rent to a housing association on the rest.

The scheme aims to give ownership to 100,000 households by 2010.

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