Help onto the housing ladder – new scheme proposed for Pendle
Published Wednesday 14th December 11
Are you a first time buyer who’s struggling to get a toe-hold on the housing ladder?
Help may be on hand if councillors at the Executive on 14 December give a new mortgage scheme the green light.
Councillors are being asked to adopt a Local Authority Mortgage Scheme.
This is in a bid to help first time buyers in Pendle with their deposits when buying a property being sold by the Council.
Councillor Linda Crossley who leads on finance explained: "It's extremely tough for many people to find up to 25% of the cost of a home as a deposit.
"A first time buyer wanting to find a deposit for a house valued at £100,000 would have to provide a deposit in the region of £25,000.
"This can be completely unaffordable and having a low percentage of first time buyers has a negative knock on effect on the whole housing market.
"We're one of a number of local authorities in the UK who are looking at this scheme so that we can take action to help people in our local area," she said.
If the Executive backs the scheme, the Council hopes to team up with Marsden Building Society to guarantee deposits of up to 20%.
This means first time buyers need to find a more affordable 5% of the deposit.
Linda added:"I must stress that the scheme does not promote reckless lending.
"Applicants will need to meet the standard lending criteria and be able to afford to keep up with their mortgage payments," she said.
Councillor Tony Beckett who leads on housing regeneration said:
"We're working hard to kick start the housing market in Pendle.
"In July the Executive agreed to pay up to 5% of the deposit to people buying houses that the Council has bought and improved.
"If this scheme is agreed as another option, we could begin to make a real difference," he explained.
If the Executive agrees to the Local Authority Mortgage Scheme and the Marsden Building Society board agree the scheme it will be launched in January.
"In the meantime we are urging would-be buyers to look at a row of newly converted terraced homes on Albert Street, in the historic Whitefield area of Nelson," said Tony.
"And we have more improved houses on offer in other areas, too.
Anyone interested in looking at houses which the Council has improved should contact Liberata Property Services at Number One Market Street, Nelson BB9 7LJ telephone 01282 878934.
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