South Kesteven District Council has £5m to help first-time buyers

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A COUNCIL is offering to reduce mortgage deposits for first-time buyers.

South Kesteven District Council has set aside a £5m fund to guarantee three-quarters of first-time buyers’ initial deposits.

It will 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 is the first in Lincolnshire to unveil this initiative.

The scheme will complement one l aunched by Prime Minister David Cameron on Monday to offer 95 per cent mortgages on new builds for first-time buyers.

South Kesteven District Council is not restricting its scheme to new builds.

Council leader Linda Neal (Con) said the scheme would help people cover the deposit.

She said: “Not too many people starting out in the housing market have got that sort of cash and that is where we can help.”

The scheme is due to be launched in April, but needs final approval by district councillors on March 1.

It will be available to South Kesteven residents buying in the district.