Edeus’ CEO Michael Bolton has launched a scathing attack against HBOS strategy for aiding first-time buyers over the buy-to-let market.
At the Mortgage Intelligence conference at the prestigous Celtic Manor resort in Newport, South Wales today, Bolton slammed the lending giants strategy as being “arse over tit” and for shying away from increased LTVs, instead focusing on shared equity products.
This followed a speech made by Bank of Scotland’s managing director Charles Haresnape in which he told delegates that the groups future strategy would include enhancing its equity share proposition so that any mortgage could have an additional equity share added to it.
Rather than subsidising first-time buyers, he says this move is designed to give them 25% more buying power.
However, after hearing HBOS plans, Bolton took a swipe at UK giant, questioning first-time buyers not being able to get on the housing ladder is such a bad thing.
He says: I bought my first house at the age of 30. To do that I saved up and bought with a friend.
“Why should a 21 year old have an automatic right to get on the housing ladder?
“The UK rental still lags behind its equivalent in Europe and this is the facility that we should be supporting rather than increasing young peoples debt.
Bolton accused some lenders of stuffing debt down young peoples throats, stating that this had been a disservice to the UK mortgage market.
He adds: I find it bizarre that Charles Haresnape is so anti-offering higher LTVs to borrowers, but is happy to lend to first-time buyers arse over tit.
Haresnape responded that just because lenders dont have an appetite for high LTVs, doesnt make it wrong. He adds that high LTVs put pressure on affordability.
Bolton also attacked HBOS retention strategy accusing HBOS of trying to kill off the remortgage market and halve the number of brokers.
But, in response Harensape says: We offer a range of products to brokers that they can recommend, so long as they are best advice.