Jardine Lloyd Thompson Group plc, the international group of Risk Specialists and Employee Benefits Consultants, through a joint initiative of a number of its operating companies: Lloyd & Partners Limited, JLT Specialty Limited and JLT insurance Management Ltd has been appointed by the Home Builders Federation, to manage and develop the new mortgage indemnity scheme.
Set up jointly with the Council of Mortgage Lenders, the scheme will see mortgages on new build homes underwritten by house builders and the Government.
By taking away the risk of default losses from lenders, the scheme allows lenders to offer 95% loan to value mortgages on new homes.
Steven Rance, Partner, JLT , said:
"This risk management solution, created in response to the reduced availability of mortgage funding for homebuyers with small deposits, will reduce lender risk at higher LTV ratios and so allow lenders to offer 95% LTV mortgages for new home buyers at more competitive rates.
"The UK's major lenders and house builders are all supporting the scheme which is being backed by the Government and is expected to launch in March. This is an extremely timely and exciting development for lenders, builders and the UK housing sector".
Before the launch JLT will be developing the legal framework, scheme structure, bank accounts and systems with this initial scheme expected to run for 3 years.
Stewart Baseley, Executive Chairman of the Home Builders Federation said:
"The lack of high loan-to-value mortgages has been a major constraint on new home sales for the last four years.
"The indemnity scheme should provide a significant boost to new home sales over the next three years. Everyone involved in the scheme is now working very hard to ensure customers and home builders gain maximum benefit.
"HBF is therefore pleased to have appointed JLT whose experience and expertise will be crucial to the scheme’s success.”
Dominic Burke Group CEO of Jardine Lloyd Thompson Group plc, said:
"This is an excellent example of JLT working with its clients and stakeholders to provide innovative solutions, in this instance not only addressing the needs of the client but also their end customers."
