Lenders urged not to adopt too many affordable housing schemes

Mortgage lenders should focus on tweaking affordable housing products like shared ownership rather than launching new ones, Mortgage Solutions reports.

Amy Nettleton, assistant director of development – sales and marketing at Aster Group, argued that too many schemes serve to confuse consumers rather than help them.

Nettleton said: “When we start to add different products it unsettles the market… it unsettles the consumer because they don’t understand it.

“Shared ownership is in its 43rd year now, I’ve been working on it for the past decade and a bit, and we still get the challenge where people don’t understand it.  “

The minimum share for shared ownership was cut from 25% to 10% last year.

Nettleton added: “I do think shared ownership is a very standard, easy product that equally lenders are comfortable with and providers are comfortable with.”