DOZENS of first time buyers will be supported onto the property ladder after a council approved a £2 million investment to help secure mortgages and boost the local economy.
Derbyshire County Council’s cabinet has agreed to join forces with Lloyds TSB to launch the Derbyshire Lend a Hand Scheme.
First time buyers who meet the scheme’s criteria will be eligible for a mortgage with a preferential interest rate if they can raise a five per cent deposit.
Councillor Andrew Lewer, Derbyshire County Council Leader, said: “Many potential house buyers are finding it difficult to find a mortgage because of the high cost levels of existing 95 per cent mortgages.
“Buying your first home is an exciting time and we want to make it affordable to help people get started on the housing ladder.
“Every time a first time buyer enters the property market it sparks another four transactions further up the chain. We know that this will provide a big boost for the Derbyshire economy during challenging financial times.”
The Derbyshire Lend a Hand Scheme is expected to be launched early next month. The county council aims to support at least 58 – and likely far more – first time buyers to receive mortgages they might not otherwise get.
It will only be available on existing houses – not new builds – to maximise the knock on effect it will have further up the housing chain.
LLoydsTSB will manage the scheme and borrowers will have to satisfy usual mortgage qualification requirements.
The maximum loan value will be £142,500, meaning borrowers who are approved by LloydsTSB credit checks could purchase a property up to the value of £150,000 with a five per deposit of £7,500, on properties with a qualifying post code.
Only one Lend a Hand scheme can operate in a district. £1.75m of the county council’s investment will cover a single scheme in the districts including South Derbyshire.
Further information is available by visiting www.derbyshire.gov.uk/yourfirsthome