Local authorities will be able to help first-time buyers struggling to get on the property ladder under a scheme which was launched today.
The initiative is aimed at people who could afford monthly repayments on a 95 per cent mortgage but do not have the big deposit that most lenders are currently demanding.
Under the scheme, local councils would step in and provide a security worth up to 20 per cent of the property's value, which would be held with the lender and on which interest would be paid, enabling the buyer to qualify for a lower mortgage rate.
The individual would still borrow up to 95 per cent of their property's value, while they would also own their home outright, unlike under a shared ownership scheme.
Source: Councils to give struggling first-time buyers 20% deposits on homes | Mail Online
--
WTF is going here - local authorities are meant to be cutting down costs massively and somehow they find money for deposits??!?!!?
The initiative is aimed at people who could afford monthly repayments on a 95 per cent mortgage but do not have the big deposit that most lenders are currently demanding.
Under the scheme, local councils would step in and provide a security worth up to 20 per cent of the property's value, which would be held with the lender and on which interest would be paid, enabling the buyer to qualify for a lower mortgage rate.
The individual would still borrow up to 95 per cent of their property's value, while they would also own their home outright, unlike under a shared ownership scheme.
Source: Councils to give struggling first-time buyers 20% deposits on homes | Mail Online
--
WTF is going here - local authorities are meant to be cutting down costs massively and somehow they find money for deposits??!?!!?
Comment