The Council of Mortgage Lenders welcomes the confirmation by HM Treasury that there will be a regular review each September by the Financial Policy Committee of the Help to Buy mortgage guarantee scheme.
The CML emphasises that lenders who choose to participate in the scheme need to know that they are operating in a predictable environment. An annual review especially if it gives good notice of any changes to the fees that lenders need to pay, or the eligibility of loans under the scheme, will be essential.
CML director general Paul Smee said: “Lenders need a predictable operating environment to participate effectively in the Help to Buy scheme.
“The various pieces of information that lenders need to understand if they are to participate are steadily becoming clearer, and we anticipate that the government will publish the detailed scheme rules soon. We now have an indication of how and when the Bank of England will determine whether the scheme needs to change during its three-year proposed lifespan, and this annual review will be a key deciding factor in that. We hope that there will also soon be clarity on issues such as the government’s exit strategy at the end of the scheme.”
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