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12 March 2012, 16:17 | Updated: 12 March 2012, 17:27
Ipswich Building Society has responded to the announcemnt of a new government mortgage indemnity scheme which is aiming to support First Time Buyers struggling to take their first steps onto the property ladder.
The Society has offered a 'cautious welcome' to the scheme but warned that it could be 'potentially very complicated'.
Under the terms of the 'NewBuy' scheme, building firms and taxpayers will become co-guarantors on any new homes bought by existing or first time buyers. The government hopes that this will enable mortgage lenders to offer a range of affordable mortgages to buyers who may otherwise be struggling to save for a big deposit.
Speaking of the plans, Paul Winter, Chief Executive at Ipswich Building Society said: "While it is great to see the government are taking the issue seriously, we would only give a cautious welcome to such a proposal. Currently the scheme is only available for those wishing to move into new builds and there is no guarantee that the mortgages products will be available straight away. Whilst we commend the government for taking the initiative to support first time buyers, we would warn that this scheme has the potential to be very complicated.
We know that most people wish to own their own home, and in the East of England raising a substantial deposit is the biggest barrier to those looking to buy. We believe that mortgage affordability is a big issue and for this scheme to work it needs to be a simple and understandable process."
The Ipswich say that they believe everyone should have the opportunity to purchase their own home. In January, the Ipswich launched their 95% mortgage to support home owners throughout England and Wales.