Bovis Homes Gurantees Buyers Mortgages

Thu, 10 Jun 2010

This is a sign that things are difficult for the UK property market at present.

It has just been revealed that Bovis Homes has linked up with Barclays and its Woolwich subsidiary to offer its customers guaranteed mortgages .

Barclays are going to dispatch the 90% mortgages .

However, it is Bovis Homes that will take on the financial risk upon agreeing to put aside a percentage of the company's profit from house sales to cover any repossession costs and future mortgage losses.

Should housebuilders, such as Bovis Homes, take on additional risk that will impact upon their profit margins and their future financial security.

However, should this be the bottom of the UK property market then there is going to be minimal risk to the company and this could be a very shrewd move.

Whichever way thgings go, we are likely to see more cooperation between mortgage lenders and housebuilder going in the future which will benefit all parties.

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