First-time buyers to get help from councils

17 March 2011

In a new scheme councils within designated areas will provide security for home loans. It is aimed at first-time buyers who are currently unable to find a deposit, but who are able to pay mortgage payments on a typical 95% mortgage. 

This is being piloted in the following regions: Blackpool, Warrington, Northumberland, Newcastle under Lyme and East Lothian.

Councils within the designated areas will provide security on the property's value, up to 20%. This will be held with the lender and first-time buyers taking advantage of this scheme will pay interest but it will allow them to benefit from a lower mortgage rate. 

Unlike a shared equity scheme, buyers will own the property outright. 

Source: Sky News

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