North Devon Council to help first time buyers get on the property ladder with 5% deposit scheme
A scheme to help first time buyers secure a mortgage with a 5% deposit has been launched today.
North Devon Council has put £1 million towards the Local Lend a Hand scheme, run in partnership with Lloyds TSB.
It is thought the scheme will help around 30 first time buyers get on the property ladder in North Devon.
NDC are the first local authority in Devon and Cornwall to go ahead with the scheme which allows first time buyers to put down a smaller deposit than is usually required to secure a house purchase.
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People wanting to take advantage of the scheme are able to select any existing North Devon property up to a maximum loan of £150,000. They must also be first time buyers, live in the property full time and be able to put down the required 5% deposit.
Additionally they will receive a lower rate of interest and NDC will also contribute 20% of the value of the property as insurance, kept in a separate account by Lloyds TSB.
Executive Member for Housing, Councillor Faye Webber: "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. I'm really pleased to see the scheme officially launched today and hope that it makes a difference to local people who have been struggling to raise the funds for a deposit to buy their own home."
Stephen Noakes, mortgages director at Lloyds TSB added: "With the launch of Local Lend a Hand in North Devon, we're making the housing market more accessible to more people. We know that many young people turn to the Bank of mum and dad to get their foot on the ladder, but that is not a solution for everyone."
North Devon MP Nick Harvey said: “Saving the large deposit required these days for a mortgage and taking the first steps onto the property ladder are a real struggle for many potential first-time buyers in the current tough economic climate.
“It is great news that North Devon Council and Lloyds TSB have teamed up on this scheme to bridge the gap and make the housing market more accessible to people in North Devon.
"Local Lend a Hand will enable people in our area to obtain a mortgage with a significantly smaller deposit than normal and benefit from a lower rate of interest, while stimulating our local housing market in the long-term.”
For more information and to get involved in the scheme visit your local branch of Lloyds TSB.