IN THIS WEEKS PAPER
• Spain complains again
• GSP fight for jobs
• Parity for the RGR
• Batuka pics
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Just hours after purchasers of Waterport Terraces went public to complain about the delays in the completion of the flats and urging the Government to re-consider compensation, the news that some, if not all, credit institutions have changed their criteria in awarding mortgages has shocked many purchasers who thought that their eligibility for a mortgage was now guaranteed. The Opposition reacted immediately to this new crisis with the Shadow Minister for Financial Services, Fabian Picardo pointing out that if the development had been completed on schedule the purchasers would have already taken advantage of the borrowings offered and this new problem would not have arisen.
The Opposition says it has been informed by some potential purchasers that some financial institutions, reacting to the international credit crunch, have altered their eligibility criteria and, whereas before they were prepared to lend up to 95% of the purchase price of properties, now, the maximum they are prepared to lend is between 85% and 90% of the value of the property. This means that at the time of completion, when the flats are eventually passed on to the purchasers, many will find that the mortgage arrangements they thought were guaranteed are no longer
available.
This places yet a new financial burden on the purchasers, many of who have bridging loans which they have had to extend as a result of the delays and which has added thousands of pounds already to the cost of the so called "affordable home". Shadow Minister for Housing, Charles Bruzon, has continuously pressed the Government in Parliament on the delays to Waterport Terraces and its completion dates.
In answer to questions from him the Chief Minister confirmed that the first phase was ten months behind schedule and that it would be ready this month, something many people do not believe. Now, because of these delays the ability of some purchasers to complete the purchase might be affected because the eligibility to a mortgage might have changed.. This says Picardo is likely to cause great hardship to many who are unable to further stretch their finances in order to purchase the flat. The Opposition Member adds that these: are the consequences of the Government's unconscionable delays in bringing the Waterport Terraces to fruition.
"This is an example of real suffering by people as a result of GSD inaction and procrastination. Now even the credit crunch which has taken years to develop has caught up with the GSD and is affecting ordinary, working Gibraltarians who wish to buy their first home. The Government needs to address this problem and not let down the purchasers at this development, again."
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