Iress updates MSO software to support three affordable home ownership schemes – Mortgage Finance Gazette
The financial technology firm says that its software now enables three projects — the government-backed First Homes, and the privately-backed Deposit Unlock and Own New programmes.
The First Homes measure is designed to help local first-time buyers and key workers onto the property ladder, by offering homes at a discount of 30% compared to the market price. In some areas, the discount may be as high as 50%.
The discounts will apply to the homes forever, meaning that generations of new buyers and the local community will continue to benefit every time the property is sold.
The Deposit Unlock plan has been developed by the Home Builders Federation in partnership with reinsurance unit Gallagher RE.
It is promoted by house builders to encourage lenders to support 95% loan-to-value offers on new-build homes specifically.
The scheme will work similarly to the government’s Mortgage Guarantee scheme, but rather than a state-offered guarantee, it offers a home builder-funded captive insurance scheme to protect lenders for the portion of the loan between 60% and 95% LTV.
The firm’s software is also able to process the Own New mortgage guarantee scheme from Market Mortgage, a firm that brings together retail lenders and investment banks to finance 95% mortgages for new-build homes in the UK. The scheme is open to first-time buyers and people who have previously bought a home.
Iress chief executive, mortgages, Andrew Simon says: “The disparity between house prices and wages has been growing for some time and the current cost-of-living crisis has only exacerbated that.
“While schemes are in place to help buyers afford their own home, making people aware of them has been half the battle. By supporting these schemes on our Mortgage Sales and Originations software we’re aiming to make it far easier for lenders to help more people realise their property ownership dreams.”