Page added on February 6, 2013
A £2 million county council mortgage support scheme has helped around 90 first-time buyers get loans worth £10 million in just four months.
The scheme has been such a success that the council is releasing an extra £2 million immediately.
In September, the county council lent Lloyds TSB £2 million, in the first phase of a £10 million scheme to offer low-cost mortgages to up to 400 first-time buyers. Under the scheme, buyers have to find a deposit of just five per cent.
The first £2 million has now been spent, enabling mortgages of £10.1 million to be lent to 90 first-time buyers. A total of 47 have already bought their homes and moved in.
County council leader Nick Rushton said: “I’m delighted that first-time buyers have been quick to take up this scheme – it shows how the council’s investment is making a real difference to people’s lives.
“We know first time buyers are struggling, so it makes sense to lend the bank some of our reserves, to help them get on the property ladder.
“This helps people into homes, boosts the economy and enables the council to get its money back, with interest, from the bank.”
Stephen Noakes, mortgage director at Lloyds TSB, said: “With the launch of Lend a Hand in Leicestershire, we’re making the housing market more accessible to more people.
“Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market.”
How the scheme works:
• The council lends money from its reserves to the bank
• The money allows the bank to offer mortgages of up to £142,500, reducing the size of deposit that first-time buyers have to find to just five per cent
• After five years, the bank repays the money, plus interest, to the council
For further details, or to apply for a mortgage, see staff at any Lloyds TSB branch in Leicestershire.