£5m scheme to help first-time buyers on to housing ladder

COUNCILLORS have backed a £5m scheme to give first-time buyers a helping hand on to the property ladder.

South Kesteven District Council’s Local Authority Mortgage Scheme would guarantee three quarters of the initial deposit when a first-time buyer takes out a mortgage.

This would mean buyers will have to pay only five per cent of the value of the property, instead of the usual 20 per cent.

The council’s cabinet discussed the scheme on Monday and recommended it be approved by the full council at a meeting on March 1.

The scheme would initially be rolled out in partnership with Lloyds Bank and would be available to first time buyers in South Kesteven, on properties worth up to £125,000.

It would not be available for mortgages on new-build homes as the Government has already announced a similar scheme for such properties.

The initial partnership with Lloyds would have a limit of £1m but councillors recommended extending the scheme to a total value of £5m with the support of other lenders.