MIG scheme start date unrealistic, says Countrywide

The government’s mortgage indemnity guarantee scheme has an unrealistic start date, Countrywide claims.

The scheme, which was announced in the government’s housing strategy last year, has a proposed start date of March 2012, but Countrywide says lenders are still awaiting the finer details of the initiative.

Nigel Stockton, financial services director at Countrywide, says while the scheme is positive for the market, there are still no explicit details available about how it will work in practice and it is therefore unclear when the scheme will become a reality.

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

Stockton adds: “Implementing the scheme within the next 12 weeks seems unrealistic, with the more probable outcome that we begin to see the first few MIG backed mortgages in Q2 or Q3 of this year.

“We welcome the opportunity to speak to the government to discuss how the mortgage industry needs to supported to boost activity in the market.”