BUILDING societies are refusing to give mortgages on a group of affordable homes in Pershore, because of the terms of purchase designed to help people onto the property ladder.

The houses on Perscoran Way are offered by a housing association at 70 per cent of their value, with the association retaining a 30 per cent share in return for a nominal rent.

The scheme, operated by Devon-based St Marychurch Housing Association, has given as many as 30 Pershore families a crucial foothold on the property ladder.

However, recent changes to lending practices have led building societies to refuse loans on the houses.

The problem is due to be discussed by Pershore town councillors tonight, who will be addressed by the head of the housing association, Caroline Dean.

She said: "At the moment the lease does not allow the purchase of the 30 per cent equity but building societies are saying that to grant mortgages they need to have the facilities in place to buy out the 30 per cent."

The matter will be discussed at the public meeting of the town finance and property committee in the new town hall at 7.30pm tonight, Thursday, August 7.