Arjan Verbeek, CEO of Perenna, has commented on the government’s recent decision to scrap the 99% mortgage guarantee scheme.
He said: “A 99% mortgage guarantee scheme for short term fixed rate mortgages is wrong. However, unless we are all happy with the way the current market works against young people, a scheme like this for long-term fixed rate mortgages (LTFRMs) is absolutely the right thing to do.
“First time buyers are struggling to get onto the housing ladder, in part because current mortgage products from mainstream lenders fail to meet the needs of these buyers. If we are serious about fostering a solution and inclusion, the industry must engage and collaborate with innovators who are ready to introduce the necessary products, rather than solely relying on established lenders. It’s time to rethink our approach and support mechanisms like LTFRMs that can provide stability and affordability to new homeowners.”
