Partner Article

Liverpool’s helping hand for first time buyers

Liverpool’s ‘Lend a Hand’ scheme is set to benefit from city council investment.

The council is giving a big boost to house buyers with a £1 million investment in the second phase of the special mortgage scheme, set up in partnership with Lloyds TSB.

Launched in March 2012, the first phase of Lend a Hand saw the council placing an initial £1 million with Lloyds TSB to underwrite ‘top-ups’ of up to 20 per cent on mortgage loans.

It meant Lloyds TSB could boost the amount made available to first time buyers, offering them 95 per cent mortgages on similar terms to a 75 per cent mortgage, but without the need to provide the large deposit usually required.

The scheme has been a massive success, with 55 local families already snapping up the offer and securing their first home. The council is now aiming to build on that success by investing a further £1 million to extend the scheme, helping many more people take their first steps on the property ladder.

Liverpool City Council’s Cabinet Member for Housing, Councillor Ann O’Byrne, said: “Our Lend a Hand scheme is making a real difference to house buyers in Liverpool, and it’s great news that we’ve already been able to help so many people get onto the property ladder.

“This additional investment means we’ll be able to help many more local families move into their first house. It’s about helping people overcome the difficult economic times, supporting first-time buyers who are finding it increasingly difficult to become home owners, and stimulating our housing market.

“This is another great example of how we are working creatively with partners to deliver services which improve people’s lives. We’re looking forward to continuing to work with Lloyds TSB, taking advantage of their mortgage expertise, to make this next phase of the scheme a massive success.”

The city council is helping relieve the burden on housebuyers. It means that, for a £100,000 property, buyers only have to pay a deposit of £5,000, rather than £25,000.

Marc Page, mortgage director at Lloyds TSB, said: “The aim of Local Lend a Hand is to make the housing market more accessible to first-time buyers in Liverpool. It’s great to see that the scheme has already helped a number of people into their new home so quickly, and is now able to help even more.

The excellent take-up shows that Lend a Hand really is providing a solution for people that might otherwise be put off by the size of deposit they would need. Now that the funding has been extended, we would urge first-time buyers to come to us and find out more.“

This was posted in Bdaily's Members' News section by Simon Malia .