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| Version 6 | Version 7 |
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| Councils to help first-time buyers on to housing ladder | Councils to help first-time buyers on to housing ladder |
| (about 1 hour 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 market | Sustainable 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. |
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| If people can't learn to save money to buy a home, then they don't need one. Most people need to come up with the 20%, or some banks may work with them to get into a starter home at 5%, thats how the rest of us did it. This is another attempt at a ponzi scheme,or another preditory lending attempt and NOBODY should fall for it! IF YOU CAN'T PUT DOWN THE $$$ THEN YOU CAN'T HAVE IT, simple as that. | |
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| Strange that councils have done this at this time. When my sister needed a mortguage in the 1970's she and her husband were given a council mortguage for the whole debt, at that time about 90% of valuation, so this is nothing new and infact is a better place for the council to save than with Islandic Banks. | |
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| Odd isn't it that the 'free market' will apply to the sky high rents private landlords charge to the majority left high and dry by this scheme, but the 'free market' doesn't seem to apply in the same way to the housing market and house prices...Its all taxpayers money funding this, you'll be paying for your mates mortgage while all you can afford for your family is a bed-sit! What a con. | Odd isn't it that the 'free market' will apply to the sky high rents private landlords charge to the majority left high and dry by this scheme, but the 'free market' doesn't seem to apply in the same way to the housing market and house prices...Its all taxpayers money funding this, you'll be paying for your mates mortgage while all you can afford for your family is a bed-sit! What a con. |
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| Add your comment...It is not acceptable for any council to withhold taxpayers monies in bank accounts. These actions interfere with current Government policies which are trying to create wealth and prosperity. The feeling of wealth comes from being able to afford something comfortably and not having a burden of debt. With sky high council taxes, responsible people would look to cut that burden. | Add your comment...It is not acceptable for any council to withhold taxpayers monies in bank accounts. These actions interfere with current Government policies which are trying to create wealth and prosperity. The feeling of wealth comes from being able to afford something comfortably and not having a burden of debt. With sky high council taxes, responsible people would look to cut that burden. |
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| So councils are going to use taxpayers money to price those who can't afford to pay a mortgage onto the streets by ensuring ever rising house prices for the banks, yet another form of taxpayer bailout...Social housing for the well-to-do, how very 'Big Society'.As soon as the penny drops and the majority of people work out they are being bilked this will be about as popular as the poll tax. | So councils are going to use taxpayers money to price those who can't afford to pay a mortgage onto the streets by ensuring ever rising house prices for the banks, yet another form of taxpayer bailout...Social housing for the well-to-do, how very 'Big Society'.As soon as the penny drops and the majority of people work out they are being bilked this will be about as popular as the poll tax. |
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