1 / 23

Introduction

Co-Ownership annual report and strategic review 2005. Introduction. Dan Corr Chair, CML Northern Ireland Regional Director, Nationwide Building Society Audit Chair, Co-Ownership. Never a borrower or a lender be …. An old adage, has it stood the test of time?

israel
Download Presentation

Introduction

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Co-Ownership annual report and strategic review 2005 Introduction Dan Corr Chair, CML Northern Ireland Regional Director, Nationwide Building Society Audit Chair, Co-Ownership COUNCIL of MORTGAGELENDERS

  2. Never a borrower or a lender be … An old adage, has it stood the test of time? • £351 millions from lenders cumulatively for Co-Ownership mortgages • No single lender with more than 20% • Local scheme, supported by multiple local and national lenders • Lenders always represented on the Board COUNCIL of MORTGAGELENDERS

  3. Impact for NI housing market • Additional FTBs • Mainstreaming of Co-Ownership model • In NI • In UK COUNCIL of MORTGAGELENDERS

  4. Perspectives on the NI market & affordability • A mortgage lender’s • Alex Solomon, CML • A shared ownership specialist’s • Alan Crowe, Co-Ownership COUNCIL of MORTGAGELENDERS

  5. Co-Ownership annual report and strategic review 2005 A Mortgage Lender’s Perspective on the Market and Affordability Alex Solomon Senior Policy Adviser, CML and Secretary, CML Northern Ireland COUNCIL of MORTGAGELENDERS

  6. What does affordability mean? • There are two aspects to affordability: • First, the ability to service mortgage debt once you have bought a home. • Second, the ability to finance entry to home ownership – e.g. deposit, stamp duty, EA fees, mortgage application fee, legal fees and simple things like buying a bed! • Will consider each aspect of affordability for first time buyers. COUNCIL of MORTGAGELENDERS

  7. Outline • What does affordability mean? • What does the data tell us about relative affordability in Northern Ireland? • Is an affordability problem there, building or non-existent? • Some thoughts on how policy can address affordability constraints. COUNCIL of MORTGAGELENDERS

  8. House price indices around the UK COUNCIL of MORTGAGELENDERS

  9. What does affordability mean? • What do you immediately think of and what is always in the press? • House Price Indices? • Number of possessions? • Writs and originating summonses? • Fine – but only partial indication of affordability. COUNCIL of MORTGAGELENDERS

  10. First-time buyer house prices, £ COUNCIL of MORTGAGELENDERS

  11. First-time buyer incomes COUNCIL of MORTGAGELENDERS

  12. Indices of first-time buyer numbers COUNCIL of MORTGAGELENDERS

  13. First-time buyer income multiples COUNCIL of MORTGAGELENDERS

  14. So – is there an affordability crisis? • For those already in owner occupation – NO –but increases in interest rates are biting. • But what about fall in FTBs? What about affordability for those looking to enter home ownership? COUNCIL of MORTGAGELENDERS

  15. Affordability indices for Northern Ireland – FTBs COUNCIL of MORTGAGELENDERS

  16. ROOF Affordability Index • Data so far has used income of those who actually purchase • ROOF index uses income of working household – i.e. is a better measure for those seeking to enter homeownership • Also assumes a standard 15% deposit COUNCIL of MORTGAGELENDERS

  17. ROOF Mortgage Costs to Income Ratio COUNCIL of MORTGAGELENDERS

  18. Where do we go with policy? • House Sales • Recent uncertainty now removed • Changes are sensible and were supported by CML • Will need to wait and see regarding impact on numbers • Need to watch future threats – e.g. Scotland • Co-ownership • Successful scheme with full support of lenders • Single delivery channel • Pleased to see certainty of funding – Alan will detail COUNCIL of MORTGAGELENDERS

  19. ROOF Affordability index around UK COUNCIL of MORTGAGELENDERS

  20. Indices of first-time buyer numbers COUNCIL of MORTGAGELENDERS

  21. So – is there an affordability crisis? • For those already in owner occupation – NO –but increases in interest rates are biting. • For those looking to move or buy their first home – While not a crisis the fall in FTBs is concerning – as is the increase in relative affordability. COUNCIL of MORTGAGELENDERS

  22. Where do we go with policy? • Shared Equity Today – 100% grant funded • England – Homebuy • Wales – Homebuy + • Scotland – Launching HomeStake • Northern Ireland? • Shared Equity Tomorrow? – Increased Private Finance? • In England, Wales and Scotland CML is discussing lender equity loans to enhance current schemes. • Should Northern Ireland join the party? COUNCIL of MORTGAGELENDERS

  23. Contact me or use our website! • www.cml.org.uk • alex.solomon@cml.org.uk COUNCIL of MORTGAGELENDERS

More Related