MIG scheme for Manchester mooted
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The Co-operative Bank and Manchester Building Society are in talks with Manchester City Council to develop a localised mortgage indemnity guarantee scheme.
The council proposes developing a Manchester scheme for first-time buyers in which it would underwrite up to 20% of a mortgage through a MIG. This would allow borrowers to obtain a 95% LTV mortgage with a lender on similar terms to a 75% LTV mortgage.
It says that early discussions with The Co-operative Bank and the Manchester suggest they are interested in developing the concept.
The council is also proposing to build some 250 new homes in a pilot scheme financed by the Greater Manchester Pension Fund.
Councillor Paul Andrews says the availability of mortgage finance and level of housing development in Manchester is not keeping pace with the city’s housing needs, which is why it is working on the two initiatives.
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