Cash lifeline on cards for first-timers

Worcester News: Cash lifeline on cards for first-timers Cash lifeline on cards for first-timers

FIRST-TIME buyers could receive a leg-up the housing ladder if councillors agree to set aside £1 million of taxpayer’s cash for use as security on their mortgages.

Worcester City Council is to debate whether or not to participate in the local authority mortgage scheme. Under the scheme’s terms, the council would bridge the gap between the deposit required by the banks and the deposit amount a first-time buyer can actually raise – usually about five per cent of house value.

The scheme would see the council acting as guarantor to the bank on up to about 20 to 25 per cent of the mortgage debt, applying its own credit criteria to those families or individuals wishing to apply.

The participating banks’ own checks would still be applied as well in the usual way. The council estimates that if adopted, the plan could help between 30 and 40 families, and help boost the numbers of first-time buyers.

Council leader Simon Geraghty said: “By helping more people to buy their first home, we can get some movement in the housing market in Worcester and free up rental properties and social housing for those who most need them.”

Other councils including Tunbridge Wells Borough Council, Hertfordshire County Council and Conwy County Borough Council are all running the scheme.

Worcester City Council says there have been no defaults on more than 1,000 mortgages issued since the scheme started last year. Councillors will vote on whether to adopt the scheme on Tuesday, November 27.

Comments (2)

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9:56am Fri 23 Nov 12

drbeat says...

Why is the taxpayer propping up overinflated house prices? This is getting beyond a joke! I wonder how many council officials have BTL portfolios because nothing else can explain this all out effort to keep house prices high!

A house is out of reach to FTBs because prices are way too high! We're I'm such a situation due to financial deregulation, easy credit and ultimately massive mortgage fraud on a scale never seen in the UK. As a result the country is now in a depression due to all our efforts peed up the wall for in the name of keeping house prices high and saving the banks??

When will this madness end?
Why is the taxpayer propping up overinflated house prices? This is getting beyond a joke! I wonder how many council officials have BTL portfolios because nothing else can explain this all out effort to keep house prices high! A house is out of reach to FTBs because prices are way too high! We're I'm such a situation due to financial deregulation, easy credit and ultimately massive mortgage fraud on a scale never seen in the UK. As a result the country is now in a depression due to all our efforts peed up the wall for in the name of keeping house prices high and saving the banks?? When will this madness end? drbeat
  • Score: 0

11:49am Fri 23 Nov 12

Landy44 says...

Agree 100% with drbeat.

The government feel the need to solve everyone's problems. They tinker. Then they're surprised with the result which generally creates more complexity and always makes matters worse.

They should just get out of the way and actually start dealing with the problems and services they are actually responsible for!

Sad to say, this country is in for an even bigger decline. It's too late to stop it now. Sure it might look like it's getting better for a while. It might even look like it's party time at some point. Then it will get much worse than now. We can't be in the shape we're in, doing what we're doing without a massive correction. The important thing is going to be how we get through it and then how we reshape things to recover at that point.

Please save us from politicians.
Agree 100% with drbeat. The government feel the need to solve everyone's problems. They tinker. Then they're surprised with the result which generally creates more complexity and always makes matters worse. They should just get out of the way and actually start dealing with the problems and services they are actually responsible for! Sad to say, this country is in for an even bigger decline. It's too late to stop it now. Sure it might look like it's getting better for a while. It might even look like it's party time at some point. Then it will get much worse than now. We can't be in the shape we're in, doing what we're doing without a massive correction. The important thing is going to be how we get through it and then how we reshape things to recover at that point. Please save us from politicians. Landy44
  • Score: 0
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