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Social Landlord Bypasses Banks To Provide 100% Mortgages

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Social landlord bypasses banks to provide 100% mortgages

A housing association is to bypass high-street lenders by offering its own mortgages at a new housing development in Milton Keynes.

Places for People, one of England’s largest registered social landlords, has become so disillusioned with banks’ lending policies that it is set to provide mortgages to first-time buyers – in some cases at 100% of the selling price.

Associations have blamed the intransigence of lenders for their failure to sell homes through shared ownership schemes. More than 8,700 low-cost homes were unsold in March even though RSLs have begun converting many to social renting.

In what is understood to be a first for RSLs, Places for People mortgages will initially be available only at Wolverton Park, an old railway town near Milton Keynes, where most of the 300 homes have yet to be sold.

Households will be able to purchase their home outright, or buy part of the property and rent the remainder. The RSL is also providing interest-free equity loans worth up to 30% of the home and offering to buy the property back should households fall into negative equity during the first three years.

A PfP spokesman said it would build on its experience of offering loans with the Co-Operative Bank for ‘Ownhome’, another scheme for first-time buyers. Households requesting 100% mortgages would be assessed thoroughly for their ability to pay.

‘We will look at this in a financially responsible manner,’ he added.

Hmm. Sounds a bit dodgy. Where/who is the 'housing association' getting the dosh?

This can be all yours...for just one soul...

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Social landlord bypasses banks to provide 100% mortgages

Hmm. Sounds a bit dodgy. Where/who is the 'housing association' getting the dosh?

They issue bonds with a yield of 8% or more? Just a wild guess based on a bit of googling.

Banks wont lend on their overpriced properties as the risk is too great.....

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How anyone asking for a 100% loan on a property could be described as finacially responsible is beyond me. If you can't scrape up at least a bit of a deposit you're not doing very well in the money management skills department.

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