Policy
Response
Reinvigorating Right to Buy and one for one replacement
BSA response|
Contact: Colette Best Date: 2 Feb 2012 |
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Building Societies have a history of helping consumers to buy their own home and the Building Societies Association is supportive of the Right to Buy scheme. Home ownership is a big commitment, and one not to be entered into lightly, so we believe that the advice that is provided to tenants will be crucial in preparing them for this transition. Advice must be tailored to its recipients if it is to be effective and we urge government to consider additional methods of providing right to buy advice than via a leaflet.
Right to buy mortgages are perceived by the regulator as risky for both lenders and consumers, as demonstrated by statistics included within the FSA’s Mortgage Market Review. Data on the mortgage market shows that borrowers who have entered the housing market through right to buy have a higher level of arrears and repossession than the industry average.
Home ownership is not appropriate for everyone and mutual lenders are focused on lending responsibly in order to ensure that home ownership is sustainable. For this reason, lenders may approach right to buy mortgages with caution.
The full response can be downloaded from the link below:
