Subscribe to our Construction Newsfeed
Uk Construction Directory
Search our 156,810 companies....

Construction News

15/01/2009

CML Welcomes Home-Owner Mortgage Support Scheme

The Council of Mortgage Lenders (CML) welcomes the government's consultation on the proposed home-owner mortgage support scheme.

This is the scheme that would enable some borrowers to defer a proportion of their interest payments for up to two years, with the government underwriting a proportion of the lender's ultimate risk of loss.

However, the CML says it is important to recognise that the impact of the deferred payments may be significant for borrowers once they get back on their feet financially. A number of important structural and operational questions, as yet to be decided, will also have a significant influence on the attractiveness and take-up of the scheme by both borrowers and lenders.
-- Advertisement --
hss



The CML understands that legislation to empower the Government to provide the guarantees will be needed. While recognising the desirability of ensuring that any scheme is implemented quickly, the CML urges the Government to undertake a regulatory impact assessment to ensure that the scheme fulfils its objectives without giving rise to unintended consequences. The operational issues need to be resolved before implementation if the scheme is to be effective in meeting its objectives.

Commenting on the proposed scheme, CML director general Michael Coogan said: "This scheme is not a payment "holiday" or a "free lunch", but rather a payment deferral. The future impact on borrowers' repayments may be very significant if they defer a high proportion of their interest, and the scheme is not without the risk of potentially unwelcome impacts on lenders.

"However, for eligible borrowers who would otherwise face repossession it may make the difference between keeping or losing their home, while for lenders it makes longer term forbearance a less risky option. If the government can find ways to address the capital treatment of loans within the scheme, and the period and amount of the guarantee for lenders, this would improve its attractiveness and likely level of take-up."

(CD/JM)

Latest Construction News

17/01/2025
Leeds Trinity University has officially opened its newly refurbished City Campus at 1 Trevelyan Square in Leeds. Completed by GRAHAM Interior Fit-Out, the transformation of the central Leeds site introduces state-of-the-art facilities designed to improve learning and collaborate with industry partn
17/01/2025
Trammell Crow Company (TCC) has secured planning permission for a Grade A logistics scheme in Heywood, Greater Manchester, following a successful planning appeal. The development will feature two state-of-the-art industrial and logistics buildings. One building will house two units measuring 4,796
17/01/2025
Poole-based developer AJC Group has celebrated a record-breaking 2024, delivering 100 affordable homes, a significant increase from the 72 units completed in the previous year. Since 2023, AJC Group has completed and handed over 172 affordable homes across five sites. In 2024 alone, the developer
17/01/2025
Plans for one of the most ambitious parks projects in London have taken a significant step forward, with Haringey Council securing nearly two additional acres of land around The Paddock nature reserve in Tottenham Hale. The agreement with Thames Water marks a major milestone in the transformation o
17/01/2025
Islington Council has unveiled two draft guidance documents aimed at helping residents, businesses, and developers combat climate change by making buildings more energy efficient and fostering a greener, healthier borough. The consultation seeks feedback on the draft Climate Action Supplementary Pl
17/01/2025
The City of Wolverhampton Council has unveiled a £98 million investment plan over the next five years to develop around 500 new homes across the city. The proposal, part of the Housing Revenue Account (HRA) Business Plan, received Cabinet approval this week and now moves to Full Council for final
17/01/2025
Croydon Council has announced a significant milestone in the redevelopment of the Purley Pool site, with revised proposals submitted for a new leisure centre, later living housing, and the regeneration of the surrounding area. A planning application for the site was initially submitted in 2024, pro
17/01/2025
The City of Wolverhampton Council has announced that demolition work has commenced on the New Park Village estate, marking the start of a major £40 million redevelopment project to transform outdated council housing. Contractor DSM Demolition has begun pulling down poor-quality bungalows on Valley
17/01/2025
Hillingdon Council has acquired 12 new homes at Carpenters Court in Uxbridge. Leader of Hillingdon Council, Cllr Ian Edwards and Cllr Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, visited the site to officially mark the handover of the properties from local developer Kearns Devel
17/01/2025
Organisers of UK Construction Week (UKCW) have announced another major coup for the show's 10th anniversary year, with the news that UKCW London will be co-locating with the 14th edition of The Stone Show & Hard Surfaces, the principal industry event for surface design. Established 26 years ago, th
Efco UK LtdAqua Direct LtdThink Construction Skills Ltd.BRICOFLOR UKStuart CanvasLakeside HireT & D Glazing And Installation LimitedContainexNo Hydro123v Plc