Oldham Council is to give first time buyers a helping hand to get on the property ladder. Subject to Cabinet approval on 27th February an indemnity will be provided by the Council to the lender to reduce the deposit requirement to 5%. The potential buter will get a 95% mortgage on similar terms to a 75% mortgage.
Under the scheme in partnership with Lloyds TSB if a potential buyer meets the lenders strict credit requirements the Council will provide an indemnity for the first 5 years of the loan when there is most risk of repossession.
It is proposed that the scheme will go live from April and will in the first instance assist around 50 first time buyers and could lead to up to 250 other sales/house moves because of the chain effect.
The scheme compliments a planned indemnity scheme from the Government for new build homes.
This scheme is aimed at assisting first time buyers to buy existing house.
The initiative is welcomed greatly by Ryder & Dutton. Many people who want to get on the property ladder, including those who are renting from private landlords are unable to save a big enough deposit, even though they could afford the mortgage repayments. This initiative is designed to bridge the gap. The Oldham Mortgage is all about making the housing market more accessible to people in Oldham.
Ryder & Dutton Director Richard Powell attended the Council briefing which launched the scheme and says ‘This is a very positive move by Oldham Council to give the local housing market a real boost and to help fisrt time buyers into the market. We are delighted it is not restricted only to new build properties. We are sure that the first 50 Oldham Mortgages will be taken up very quickly’.
Anyone wanting to express an interest click here…..it may be that the link will not be live until after 27th February.