Now, that’s not an offer you hear very often these days is it? It’s a potent sign of the times, then, that Bovis Homes have teamed up with Barclays and Woolwich to offer guaranteed mortgages to customers.
Barclays will foot the mortgages while Bovis risk footing the bill for future repossessions or other mortgage losses by ring-fencing a portion of its profits from house sales. Unwise or perceptive, do you think?
Well, if the property market continues to fall, or even if it remains static, Bovis profit margins will likely suffer. If, however, we are at the turning point – i.e. the property market falls no lower, then it could be a very clever move indeed.
What’s the relationship between Barclays and Woolwich?
Woolwich became part of the Barclays Group in 2000 and is responsible for the mortgage side of the Barclays business.