First-Time Buyers Scheme Launched in Charnwood

CHARNWOOD Borough Council is urging first-time buyers to seize the chance to get on the housing ladder thanks to a new scheme.

Charnwood residents can take advantage of the first-time buyers scheme which has been launched by Leicestershire County Council and Lloyds TSB.

The County Council has provided an initial loan of £2 million to Lloyds TSB, which could help up to 90 first-time buyers get their dream home with just a 5% deposit.

If the scheme is successful, the County Council has agreed further loans of up to £8m to support the scheme.

Launching the scheme at Lloyds TSB in Loughborough on Tuesday, September 11, Leicestershire County Council’s acting leader, Nick Rushton, said: “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.”

Councillor Jane Hunt, Charnwood Borough Council’s Cabinet member for Housing, said: “We are delighted to support this Leicestershire County Council scheme to help residents in our Borough get on the housing ladder.

“In these tough times, anything which helps give residents the chance to own their own property is very warmly welcomed. I hope that residents take advantage of this fantastic scheme.”

The scheme is not available for new-build properties or right-to-buy Council houses.

How the scheme works:

• The County Council lends money from its reserves to the bank
• The money allows the bank to offer mortgages of up to 95% of the property value, but at interest rates which are similar to those payable on a 75% mortgage
• Lloyds TSB is responsible for agreeing individual mortgages, which will only be available to those who are assessed as being able to afford interest and capital repayments on a 95% loan. This is not a shared ownership scheme.
• The maximum loan value is £142,500, meaning that a first-time buyer can purchase a £150,000 property with just a 5% deposit
• After five years, the bank repays the money, plus interest, to the County Council

For further details of the scheme, please contact mortgage advisers at your local Lloyds TSB branch:

Alan Patterson 07525240287  – Loughborough & Melton Mowbray

Sabiha Moghal 07725447130 – Loughborough