…. and the small print taketh away… It is interesting to note that the quality housebuilding company Persimmon released a statement this week confirming something that we blogged about a few weeks ago. Chief executive Mike Farley said that, lending was still, “the number one issue in the industry”. The Government New Buy Programme which requires only a 5% deposit, has helped Persimmon attract the staggering number of 45 new buyers so far. As we have preiously commented, no number of new schemes with flashing lights and bells will replace the traditional values required in the current mortgage market. Putting it bluntly, it doesn’t matter where it comes from (within legal terms!) but get your own 10% deposit.
The big headline grabbing new scheme that was going to re-invigorate the housing market was subject-as is anything that seems too good to be true- to the small print that stated that the qualifying criteria were so specific that it exluded the people who really needed the help. The people who did qualify would appear to have met normal lending critereia anyway. It is rather like the banking system which is always willing to loan customers umbrellas in July and August; but when the same people want the loan in January in a biblical downpour, it is a very different story.