A north of England firm that claims to offer a more affordable route into home ownership than available with a conventional mortgage, is now on the look-out for developers to work with in London.
The Genie Home Purchase Plan allows buyers to enter into a long-term payment plan of 25 to 30 years, which sees purchasers acquire an increasing share in their homes over time. No deposit is required.
During the term of the contract they have the same rights and responsibilities as someone who purchased their home with a conventional mortgage and will own the property outright on completion.
Now Genie is seeking partnerships with London developers to deliver 2,000 new homes in the capital over the next 10 years.
The company has signed a deal with the Greater London Authority which will see it access up to £40m of loan finance to deliver the properties.
Meanwhile four areas of the capital have been given special status as housing zones. More than 12,000 new homes - 3,500 of which will be affordable - will be built in Havering, Enfield, Redbridge and Tower Hamlets.
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It's very hard to eliminate something people want. Take 100% mortgages, they were offered successfully for many years before the banks started getting greedy. It was ironic that in getting rid of them they claimed it was the borrowers who were irresponsible when it was really them who caused the credit crunch, you can't lend long and borrow short forever! Anyhoo what I am getting around to saying is that this sounds like a repackaged 100% mortgage, hopefully properly financed and fairly priced.
No deposit houses sound brilliant, but I'd be interested to see how it works in practice. As you say, Simon, 100% mortgages were also flawed, as is the current system. There is no easy solution, unfortunately.
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