Government presses ahead on MIG

The government says it is on track to launch its mortgage indemnity guarantee scheme in March despite claims that the proposed start date is unrealistic.

Last week Nigel Stockton, financial services director at Countrywide, said lenders are still awaiting the finer details of the scheme and therefore the first mortgages under the initiative are unlikely to be available until Q2 or Q3.

He says: “Having spoken to a number of major lenders recently, they appear to be awaiting the finer details of the application and submission process. Also, it is yet to be determined whether any systems changes are needed, which could further delay the process.”

But a spokesman for the Department for Communities and Local Government says: “We are working with lenders, the Home Builders Federation and the Council of Mortgage Lenders and making good progress to ensure the introduction of the MIG scheme in March 2012.”