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CDC to help first-time buyers with mortgage scheme
COTSWOLD District Council is developing a new mortgage scheme which will help first time buyers take their first step on the housing ladder.
The council has set aside £1million from reserves for the initiative which will mean people would only need a five per cent deposit to buy their first home.
CDC would guarantee a further 20 per cent, so first-time buyers can access lower mortgage rates.
Prospective buyers would still need to be able to afford their mortgage repayments, but will not have to save the large deposit that lenders now ask for.
The council intends to launch the scheme in the autumn and is currently working with Sector Treasury Services to agree a partner lender and work through legal processes.
Rosemary Lynn, head of sustainable communities and housing at CDC, said: “We are conscious that it is very difficult for young people in the Cotswolds to get a deposit together for a house, especially when the typical sum required for this area is about £15,000 given that the maximum loan to value mortgage on offer is normally 80-90 per cent.
“This scheme would enable them to obtain a 95 per cent loan to value mortgage and it would make a big difference financially. “
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