New scheme will help first-time buyers

| March 16, 2011
New scheme will help first-time buyers

Five local authorities are piloting a scheme which is set to help first-time buyers get on the property ladder.

Since the credit crunch more than three years ago, first-time buyers have been struggling to secure a mortgage unless they have a substantial deposit.

It is hoped that the scheme, called Local Lend a Hand, will initially help around 300 first-time buyers but if other councils sign up to the scheme, thousands could benefit.

The five councils involved in the scheme are Blackpool, Warrington, Northumberland, Newcastle under Lyme and East Lothian, but if successful, it will be rolled out to other areas of the UK.

As part of the scheme, councils will provide a security worth up to 20% of the property’s value in a Lloyds TSB account, with the lender requesting a 5% deposit.

The initiative has been welcomed by housing minister, Grant Shapps, who has been urging lenders to help first-time buyers.

Commenting on the scheme, Stephen Noakes of Lloyds TSB, said: “By developing Local Lend a Hand and working with local authorities across the UK, we’re broadening the prospect of home ownership to even more first-time buyers.”

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