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Showing posts from March, 2011

Help For First Timers??

Councils to help first-time buyers on to housing ladder Extracted from BBC online news Councils are to help first-time buyers get on the housing ladder by topping up their deposits. Five councils are pioneering a scheme aimed at buyers who can afford the monthly mortgage repayments but do not have a lump sum saved up. Many first-time buyers find it difficult to purchase a home because lenders are asking for hefty deposits. The councils will put 20% of the price in a Lloyds TSB account, with the lender asking for a 5% deposit. The funds will not go to the buyer and the mortgage rate will be lower. The councils risk losing money if a buyer defaults, but they get a generous interest rate themselves. The scheme could benefit up to 300 first-time buyers in each area, but if other councils join, thousands could potentially benefit. Another 10 councils are waiting to join the scheme. The scheme is called Local Lend a Hand. "We know that a lot of young people turn to the Bank