Tuesday, September 25, 2012
North Devon Council is proposing a mortgage deposit loan scheme to help local people on to the property ladder.
COUNCILLORS are considering a scheme to help first time buyers in North Devon obtain a mortgage.
At the executive committee on Tuesday they will recommended to approve £1 million to fund entry into the ‘Local Authority Mortgage Scheme’ that will guarantee a loan for a deposit on a house.
The buyer needs to find five per cent as a deposit, then the loan will top that up to 25, enabling them to enter the mortgage market.
The report by housing officer Jaime Jeyes says applicants must be first time buyers and meet the mortgage lender’s strict criteria.
The applicants must live in it as their main residence and it is estimated the scheme would help 62 new buyers get on to the housing ladder.
Executive member Councillor Faye Webber told the Gazette the scheme was being proposed following the local Liberal Democrats’ manifesto promise to help first time buyers.
A total of 29 other local authorities are already running similar schemes.