News

Mortgage Indemnity Guarantees policy to launch on 14/3/2012

  • January 24, 2012
  • By Hunters Law

The policy will see the government, developers and lenders share the risk on 95% loan to value mortgages on new build properties.

It is hoped that this will assist up to 33,000 new home purchases each year until the end of the parliament.

The policy is open to all qualifying purchasers. Full details of the criteria have yet to be published, but it is not expected to be limited to first time buyers although Buy-to let and second home purchasers will be excluded from the scheme.

Under the scheme the purchaser pays a 5% deposit, with the lender providing the balance of the purchase price applying their usual criteria for eligibility.  However, to mitigate the risks run by the lender the house builder deposits 3.5% of the property value into an indemnity fund, whilst the government also provide a guarantee for 5.5% of the property value.  The lender takes the usual risk on the remaining value of the property whilst the purchaser takes on exactly the same risks as under a conventional mortgage.

It is hoped that house building will be boosted by giving this additional protection to lenders and by providing potential purchasers with access to higher loan to value ratio mortgages than are normally available.

For further information on the potential role of Mortgage Indemnity Guarantee in residential transactions, please do not hesitate to contact Katie Wright.

Related News

Feb 08, 2021
Peter Robinson discusses Indexation Based Rent Reviews
Jan 19, 2021
Peter Robinson comments on what new and existing landlords need to know in RBS HomeWise
Jan 04, 2021
Peter Robinson discusses The Supreme Court’s decision in Alexander Devine Children’s Cancer Trust v Housing Solutions Ltd
Dec 11, 2020
Hunters retains Law Society’s Conveyancing Quality Scheme accreditation
Nov 12, 2020
Peter Robinson examines the government’s ban on evictions of commercial tenants during the pandemic and what commercial landlords should consider in The Law Society
Nov 12, 2020
Ben Gurluk comments on the Stamp Duty holiday in the Daily Express
Oct 30, 2020
Peter Robinson examines a recent Supreme Court case that is relevant for property investors in the challenging environment of the retail property market in Lawyer Monthly
Oct 22, 2020
Peter Robinson analyses the government’s extension of moratorium on eviction in New Law Journal
Oct 16, 2020
Peter Robinson examines the economic consequences of COVID-19 for commercial landlords in Property Industry Eye
Oct 16, 2020
Peter Robinson discusses UK property investors facing particular pressures during the pandemic in Property Week

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)

WARNING: Website falsely claiming to be Hunters Law

4 March 2021

The website 'hunterslawllp.com' is operating, falsely claiming to be Hunters Law. This website has been created to mirror the genuine site, although contact details including telephone number and email addresses have been changed, and the SRA verification badge does not work.

We have also been made aware of a series of faxes circulating, purporting to come from ‘barrister’ Dominik Opalinski, advising of an unclaimed inheritance of $16.95M, which feature the same website address. Dominik is a genuine partner of the firm, but is not a barrister.

We have reported this to the SRA, and contacted the website domain hosts to request its urgent removal. If you receive correspondence of a similar nature to that described, please contact us directly by reliable and established means.