This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12754818

The article has changed 38 times. There is an RSS feed of changes available.

Version 11 Version 12
Councils to help first-time buyers on to housing ladder Councils to help first-time buyers on to housing ladder
(40 minutes later)
Councils are to help first-time buyers get on the housing ladder by topping up their deposits.Councils are to help first-time buyers get on the housing ladder by topping up their deposits.
Five councils are pioneering a scheme aimed at buyers who can afford the monthly mortgage repayments but do not have a lump sum saved up.Five councils are pioneering a scheme aimed at buyers who can afford the monthly mortgage repayments but do not have a lump sum saved up.
Many first-time buyers find it difficult to purchase a home because lenders are asking for hefty deposits.Many first-time buyers find it difficult to purchase a home because lenders are asking for hefty deposits.
The councils will put 20% of the price in a Lloyds TSB account, with the lender asking for a 5% deposit.The councils will put 20% of the price in a Lloyds TSB account, with the lender asking for a 5% deposit.
The funds will not go to the buyer and the mortgage rate will be lower.The funds will not go to the buyer and the mortgage rate will be lower.
The councils risk losing money if a buyer defaults, but they get a generous interest rate themselves.The councils risk losing money if a buyer defaults, but they get a generous interest rate themselves.
The scheme could benefit up to 300 first-time buyers in each area, but if other councils join, thousands could potentially benefit.The scheme could benefit up to 300 first-time buyers in each area, but if other councils join, thousands could potentially benefit.
Another 10 councils are waiting to join the scheme.Another 10 councils are waiting to join the scheme.
Sustainable marketSustainable market
The scheme is called Local Lend a Hand.The scheme is called Local Lend a Hand.
"We know that a lot of young people turn to the Bank of Mum and Dad to get their foot on the ladder, but that's not a solution for everyone," said Stephen Noakes of Lloyds TSB in a statement."We know that a lot of young people turn to the Bank of Mum and Dad to get their foot on the ladder, but that's not a solution for everyone," said Stephen Noakes of Lloyds TSB in a statement.
"By developing Local Lend a Hand and working with local authorities across the UK, we're broadening the prospect of home ownership to even more first-time buyers."By developing Local Lend a Hand and working with local authorities across the UK, we're broadening the prospect of home ownership to even more first-time buyers.
"Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market," he added."Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market," he added.
The councils involved so far are Warrington, Northumberland, East Lothian, Blackpool and Newcastle-under-Lyme.The councils involved so far are Warrington, Northumberland, East Lothian, Blackpool and Newcastle-under-Lyme.


Comments



Comments

You are not currently signed in. or register.You are not currently signed in. or register.
 
  • id="comment_107312627">
 
  • id="comment_107313322">
This comment is awaiting moderation. Explain.This comment is awaiting moderation. Explain.
href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107312627&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107313322&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment
title="Copy this link to generate a permanent link to this comment">Link to this title="Copy this link to generate a permanent link to this comment">Link to this
  • id="comment_107312554">
  • id="comment_107313317">
    • Factually: In this transaction, 80% the risk is borne by the taxpayer, 20% by the borrower and 0% by Lloyds, unless house prices fall by more than 25% from here.I would write to complain to your local councillors now and try and nip these schemes in the bud. Taxpayers money is at risk here, and Lloyds will benefit either way whether people default or house prices fall. This comment is awaiting moderation. href="http://www.bbc.co.uk/blogs/moderation.shtml#appear" target="_blank">Explain.
    href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107312554&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107313317&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment
    title="Copy this link to generate a permanent link to this comment">Link to this title="Copy this link to generate a permanent link to this comment">Link to this
  • id="comment_107312540">
  • id="comment_107313246">
    • Just another policy that will prolong the correction in house prices and using tax payers money to do it! This comment is awaiting moderation. href="http://www.bbc.co.uk/blogs/moderation.shtml#appear" target="_blank">Explain.
    href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107312540&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107313246&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment
    title="Copy this link to generate a permanent link to this comment">Link to this title="Copy this link to generate a permanent link to this comment">Link to this
  • id="comment_107312530">
  • id="comment_107313158">
    • SnoddersB is right. Councils lent mortgages in the 70’s and 80s (Right to Buy) They had schemes with Building Societies to get round the rules requiring an initial savings period before a loan would be made. This scheme is unlikely to be very large scale; very unlikely to have any impact on the market, but could be very helpful to some. From the Council’s point of view it is an investment. This comment is awaiting moderation. href="http://www.bbc.co.uk/blogs/moderation.shtml#appear" target="_blank">Explain.
    href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107312530&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107313158&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment
    title="Copy this link to generate a permanent link to this comment">Link to this title="Copy this link to generate a permanent link to this comment">Link to this
  • id="comment_107312437">
  • id="comment_107312972">
    • What a brilliant idea !!!! Is this the same Northumberland County Council who can't afford to fix the roads, Can't afford to keep old folks' home open - the list goes on ... and on but they'll risk OUR, the Council Tax Payers money on a scheme like this especially when house repossessions are at an all time high ...Crazy, absolutely crazy - then again, it is a Council spawned idea !! This comment is awaiting moderation. href="http://www.bbc.co.uk/blogs/moderation.shtml#appear" target="_blank">Explain.
    href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107312437&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment href="http://www.bbc.co.uk/dna/newscommentsmodule/comments/UserComplaintPage?PostID=107312972&s_start=1" class="popup dna-commentbox-complain-link" title="Complain about this comment"> Report this comment
    title="Copy this link to generate a permanent link to this comment">Link to this title="Copy this link to generate a permanent link to this comment">Link to this
       
    Comments 5 of 24 Comments 5 of 30
       
    Add your commentAdd your comment
    You are not currently signed in. or register.You are not currently signed in. or register.