First-time buyers in Gedling borough still have time to sign-up for a council scheme which gives them a lift onto the property ladder.
The Local Lend-A-Hand project was set-up to help first-time buyers in the area with a small deposit, but time is running out for new applications as the scheme comes to an end in July.
The project, which is run by Gedling Borough Council and Lloyds Bank, helps the buyer with a deposit of just 5%. Since it launched in 2012, the council have had 36 successful applications.
Gedling Borough Council set aside £1m and have so far invested £846,000 which has helped 36 buyers on to the property ladder. There is a remaining amount of £154,000 which could potentially support a further six or seven mortgages but the deadline for applications is July 31, 2016.
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.
Responding to calls for further innovation in the first-time buyer market, Lloyds Bank worked with Sector Treasury Services, part of the Capita Group, to develop the Local Lend a Hand product. The scheme helps first time buyers seeking a mortgage but who do not have the 10% deposit normally required by lenders. Successful applicants will also benefit from favourable interest rates.
Gedling Borough Council leader, Councillor John Clarke, said: “We launched this scheme back in 2012 and it has been a big success. It has helped 36 first time buyers get on the property ladder at a time when borrowing has been almost impossible. There is still a pot of money left and we urge any potential new home owners to get in touch with Lloyds Bank and apply for the support.”
Subject to Lloyds Bank usual lending criteria, borrowers are able to select any existing property in the area covered by Gedling Borough Council up to a maximum loan of £118,750. This does not include new build homes. First time buyers will put down 5% of the property price, and Gedling Borough Council will provide a cash backed indemnity of up to 20% as additional security. The local authority then earns interest on this amount.
The first time buyer owns the property in its entirety, and will have access to a range of products at a lower rate of interest than would normally be available for this level of deposit.
Those interested in the local scheme should visit their local branch of Lloyds Bank for more information or visit www.gedling.gov.uk/housing