WOULD-BE homeowners are to be given a helping hand onto the housing ladder by a new mortgage support scheme launched by Nottinghamshire County Council and Lloyds TSB.
The council has set aside £15m for the Local Lend a Hand scheme, which will be available in local branches of Lloyds TSB.
The scheme will help at least 500 first-time buyers to purchase their dream home with a deposit of just five per cent.
First-time buyers often say that raising a deposit is the biggest challenge they face when looking to take their first steps onto the property ladder.
The scheme is open to first-time buyers purchasing a property worth up to £150,000.
It enables borrowers to buy their first home with a deposit less than the 10 per cent or greater required by most mortgage lenders.
The fixed rate mortgage products that will be available during this scheme will also be at a lower rate of interest than would normally be available for this level of deposit.
Coun Reg Adair, chairman of the finance and Property Committel, said: “We believe the level of funding we are proposing to put behind the scheme will make it the biggest of its type in the country and reflects the positive impact we believe it can have on both the lives of hundreds of Notts residents and the county’s economy.”
Responding to calls for further innovation in the first-time buyer market, Lloyds TSB worked with Sector Treasury Services, part of the Capita Group, to develop the Local Lend a Hand product.
Stephen Noakes, mortgages director at Lloyds TSB, commented: “We know that many young people turn to the Bank of Mum and Dad to get their foot on the ladder, but that is not a solution for everyone.
“Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market. Local Lend a Hand addresses some of the real problems that prospective buyers in Nottinghamshire might face.”
Anyone interested in the scheme should visit a local branch of Lloyds TSB for more information or via at www.nottinghamshire.gov.uk/mortgages.