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Scheme officially launched in the borough
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.