Councils underwrite mortgages for first-time buyers
Liverpool City Council has announced a £3m scheme to help homebuyers get on the property ladder.
The money will be used by the council to underwrite mortgages to reduce the amount that first-time buyers have pay as a deposit.
The council said that the money, which is being provided as part of its Housing Delivery Plan, could help more than 200 buyers to get onto the market.
The city council will underwrite ‘top-ups’ of up to 20 per cent on loans so that first-time buyers currently only offered mortgages for up to 75% of a property's value will be able to access 95% mortgages on similar terms.
It will place the £3m in a high interest account, which will only be called upon to cover defaults. Any profit from interest earned will be ploughed back into the scheme.
Liverpool City Council leader, Cllr Joe Anderson, said: “We are determined to stimulate the housing market here and to do all we can to support those who wish to buy a home. This scheme is an important part of our plans for achieving that.”
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