Jardine Lloyd Thompson Group (JLT) has been appointed by the Home Builders Federation (HBF) to manage and develop the new mortgage indemnity scheme.
Through a joint initiative of a number of its operating companies, Lloyd & Partners, JLT Specialty, and JLT insurance Management (Guernsey), JLT will manage and develop the scheme.
The scheme, set up jointly with the Council of Mortgage Lenders (CML), will see mortgages on new build homes underwritten by house builders and the Government.
The scheme will allow lenders to offer 95% loan to value (LTV) mortgages on new homes by taking away the risk of default losses from lenders.
JLT will be developing the legal framework, scheme structure, bank accounts and systems with this initial scheme expected to run for 3 years before the launch.
Steven Rance, Partner at JLT , said that 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," added Rance.
HBF executive chairman Stewart Baseley said that 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.