Cash boost to help first time buyers
A £10 million scheme to help more than 400 first time buyers has been launched thanks to Leicestershire County Council and Lloyds TSB.
Leicestershire County Council is lending £10 million to enable the bank to provide affordable mortgages, through the Lend a Hand programme.
The council has provided an initial loan of £2 million to Lloyds TSB – which could help up to 90 first time buyers and boost the economy, by enabling them to purchase a home with a deposit of just five per cent.
The full £10 million will enable more than 400 first time buyers enter the housing market. It should result in a further 2,000 house moves, by freeing up houses for rent as more people buy their own homes.
Launching the scheme at Lloyds TSB in Loughborough, the 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."
Stephen Noakes, mortgage director at Lloyds TSB, said: "With the launch of Lend a Hand in Leicestershire, we're making the housing market more accessible to more people. Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market."
Christina East, of Melton, said: "I'm still living at home, age 24 – it's a bit sad, really, but I couldn't afford a deposit of about £8,000.
"I heard about this scheme on the news and got advice. I'm so impressed that I can borrow five times my salary and only have to find a £4,000 deposit.
"Now I can start looking for property, instead of just dreaming. It's a really good opportunity for young people. I should be able to get a nice terrace in Melton."
The scheme has already proved a success in Blaby. The county council's scheme would expand it to the rest of Leicestershire, excluding Leicester. For details, or to apply for a mortgage, see staff at any Lloyds TSB branch in Leicestershire.