New lender Magellan Homeloans has urged the government not to forget those homeowners most impacted by the recession, as it launches new initiatives to help want-to-be house buyers.
Matt Gilmour (pictured), managing director at Magellan, said Help to Buy is all well and good for borrowers with clean credit records, but many thousands of homeowners have impaired records as a direct result of the economic downturn.
He said: “The government also needs to extend a helping hand to people who, often through no fault of their own, have suffered financial hardship and now find themselves in a position where it’s very difficult to obtain mainstream mortgage finance.”
When announcing to roll-out of phase two of the Help to Buy scheme, David Cameron said: “As prime minister I am not going to stand by while people’s aspirations to get on the housing ladder are being trashed. It will only be people with rich parents to help them who can get on the housing ladder – that is not fair, it is not right.”
Magellan Homeloans says that any government initiative designed to stimulate the housing market should be available not just for those struggling to raise a deposit, but also for those struggling to access any form of finance.
Gilmour added: “Many believe that people with an impaired credit record have mismanaged their money and therefore have no right to a mortgage. The truth is, however, that many borrowers suffered as a direct result of circumstances beyond their control and have since worked hard to get their finances back under control.
“They deserve a second chance and if David Cameron wants to show that he’s a truly caring Prime Minister, then he should ensure all government schemes are as inclusive as possible.”
