North East Derbyshire and Bolsover Councils plan to help first-time buyers on housing ladder

Bolsover District and North East Derbyshire District Council’s are to introduce a Local Authority Mortgage Scheme aimed at helping first-time buyers onto the housing ladder.

As part of the scheme the Councils propose to help people who can afford mortgage repayments, but not a large deposit, to secure a house by providing an indemnity for up to 20 per cent of the total value of the mortgage with the lender.

The Councils’ indemnity would only be called upon if the borrower failed to make the repayments or breached the terms of the mortgage and the property was sold at a loss.

The scheme is the first launched by Bolsover District Council and North East Derbyshire District Council and is to be launched in February 2017. It will allow first-time buyers to get a 95 per cent mortgage on similar terms as a 75 per cent mortgage but without the large deposit normally required.

A joint statement from Councillor John Ritchie (Cabinet Member for Housing at BDC) and Councillor Bette Hill (Cabinet member for Housing Strategy at NEDDC) , said: “This is a great scheme which helps first time buyers in Bolsover District and North East Derbyshire District get on the property ladder and, at the same time, contribute to the local economy. We are delighted to join forces with one of our local lenders to launch this scheme.”

“If you’re looking to establish your first home then this may be something that will help you do just that, with aspiring home owners able to access up to 95% loans. I would encourage anyone interested to visit their local Leek United Building Society branch and ask about LAMS mortgages.”

Clare Beardmore at Leek United, said: “LAMS has made the opportunity for first-time buyers to get onto the property ladder so much more realistic.”

“We are delighted to be extending the scheme into Derbyshire in a partnership with Bolsover District and North East Derbyshire Councils, to assist homebuyers in our ‘heartland’.”

Under LAMS, almost 70 local authorities have now worked with mortgage lenders and supported 3,900 families and individuals to buy their first home during a time when it was virtually impossible to otherwise obtain a mortgage with a relatively small deposit.

Capita Asset Services works closely with local authorities and supports them in launching their scheme.

Hayley Sullivan, Associate Director at Capita Asset Services, said: “This scheme has been operating successfully in many parts of the UK for over five years and is still helping first time buyers to buy their first home with a lower deposit than usually needed. This innovative scheme has already helped over 3900 people or couples to buy their first home, is stimulating the local housing market and benefitting the wider economy.”

Only first-time buyers with a minimum five per cent deposit who can meet the repayments on a 95 per cent mortgage will be eligible for the council scheme.  The potential buyer will also need to meet the normal criteria of the mortgage lender.

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