Deposit scheme for first-time buyers (From Andover Advertiser)
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Scheme officially launched in the borough
3:00pm Monday 28th January 2013 in Basingstoke By Adam Richards
Deposit scheme for first-time buyers
A SCHEME to give first-time buyers a leg up on to the housing ladder in Basingstoke and Deane has been officially launched.
Basingstoke and Deane Borough Council has teamed up with high street bank Lloyds TSB to enable selected borough residents to buy their first home with a deposit less than what most mortgage lenders demand.
The scheme was approved by the council last year and means that up to 50 first-time buyers only have to stump up a five per cent deposit to obtain a mortgage.
Deposits normally demanded by banks can be up to 25 per cent the cost of a property.
In October last year, councillors approved placing £1million with the bank. This allows the borough council to guarantee the deposit of up to 20 per cent of a house price. The scheme should benefit at least 40 people.
Councillor Rob Golding, Basingstoke and Deane Borough Council’s Cabinet member for housing and regeneration, said the scheme will help people to get on the property ladder in an area that has seen average house prices continue to rise in the past year.
“We understand that it can be difficult for people to raise the money to buy their first home even if they can afford the monthly payments,” he said.
“House prices in our borough are rising. This is a way we can use the council’s resources to help young people to put down roots in the area where they grew up.”
Deputy council leader Cllr Ranil Jayawardena – a Lloyds TSB employee – also welcomed the scheme. He said: “It is great that we are finally supporting hard-working, tax-paying, young people who can afford a home of their own but can’t afford a big deposit.”
Lloyds TSB’s Festival Place branch manager Doug Howie said one couple had already used the scheme to help them buy a £150,000 property.
He said: “A five per cent deposit from the customer’s point of view is a saving of thousands of pounds.”
The scheme is run and administered by Lloyds TSB. For more information, call 08454 255158.
Comments(6)
Sensory
says...
8:33am Tue 29 Jan 13
And yet the root cause, lack of housing, is being addressed by Nimby campaigner groups at every step. Lower prices will help, fiddling around the edges with schemes such as this will "help" young people with a millstone round their neck.
Or, to put it another way, if a profit-making organisation, such as a bank bank or a housebuilder, says that something is a good idea, it most certainly is.....for them. I pity anyone who is sucked into this and finds out in 5 or 10 years time that the biggest purchase of their life was an expensive and irrecoverable mistake.
Sensory
says...
9:05am Tue 29 Jan 13
Sensory
says...
9:07am Tue 29 Jan 13
Sensory wrote:Or maybe I didn't refresh my cache and my post only appeared after the second post.
It seems that criticism of the scheme is unwanted and any posts not toeing the line will be removed. Shame.
An apology from me and fresh air for me might be in order this morning....
jonone
says...
12:09pm Tue 29 Jan 13
Sensory wrote:What lack of housing? How much housing do you want built in Basingstoke? Large private developments all over, plus at least 3 major social housing developments across the borough.
“House prices in our borough are rising." And yet the root cause, lack of housing, is being addressed by Nimby campaigner groups at every step. Lower prices will help, fiddling around the edges with schemes such as this will "help" young people with a millstone round their neck. Or, to put it another way, if a profit-making organisation, such as a bank bank or a housebuilder, says that something is a good idea, it most certainly is.....for them. I pity anyone who is sucked into this and finds out in 5 or 10 years time that the biggest purchase of their life was an expensive and irrecoverable mistake.
Sam_Walker123456
says...
2:44pm Tue 29 Jan 13
There are lots of people who would like to own their own homes but for whom saving a 25% deposit is almost impossible within a reasonable length of time. Often they are already paying rents which are equal to, or even higher than, the repayments for the mortgage they require. This scheme allows them to secure a house and mortgage with a 5% deposit. Normal lending rules will apply and first come, first served with a good credit history will apply. We know the cost of mortgages can go up as well as down, but rents only ever go up. Most people will have paid off a mortgage by the time they retire while rent continues forever. So far from being a millstone it will free them from the shackles of rent (to mix your and my metaphors).
iamapayne says...
3:09pm Mon 28 Jan 13
As I understand the scheme it is not saving the customer any money. They have to put down a 5% deposit and borrow 95%. They are not being given 20% by the council. They still have to pay the full price of the house.