I’m angry with Barclays; 29 Jul 10

Barclays has told me that it doesn’t do shared equity mortgages if the buyer does not have the opportunity to acquire 100%. I complained and, to its credit Barclays responded promptly but, to my mind, inadequately. I’ve written back to it:

QUOTE

Thank you for your letter of 27 Jul 10 and for the speed of your response to my earlier ‘complaint’ via my local mortgage advisor. 

I am at a loss to understand Barclays’ position. Shared Equity schemes are a fundamental part of the government’s policy to enable less well paid people to acquire a stake in the housing market. These schemes are run through registered social landlords which themselves are committed to maintaining an availability of low cost housing. 

Barclays has decided that it does not wish to play this game. That’s fine if that’s what it wants to do, it is after all a private company. However I find this unacceptable on two counts (at least): 

1 just after you have been party to the most serious recession this country has been though for decades you are deciding not to participate in lending which will support its recovery; and 

2 your claim about ‘risk to Barclays’ is unfounded. At a time when house prices are several times higher than average earnings there is going to be a demand for shared equity properties for the foreseeable future. Get real! 

I hope that you will escalate this ‘complaint’ and that Barclays policy in this area will be driven at least in part by its desire to contribute to the UK economy and not just to take profits from it.

UNQUOTE