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New £7 million Essex scheme to benefit first time buyers

28-May-2013

Published by Helen Adams.

A new £7 million initiative by Essex County Council will help up to 6,000 first time buyers in the area move into their dream home.

Under the Local Authority Mortgage Scheme, councils will be able to give mortgage lenders in five borough councils, including Essex, a guarantee of up to 20 per cent of the usual 25 per cent deposit that is needed before they lend a mortgage to buyers. This means that a first time buyer will only need to have a five per cent deposit saved to get onto the property ladder. This scheme will last up to 2018 and will only apply for home that have a value up to £263,000.

Some £1 million will be given to the councils, whilst boroughs will fund an additional £1 million, meaning that there will be £2 million in the pot for the scheme.

If individuals want to partake in the scheme, they must be a first time buyer who can pay a fiver per cent deposit, must meet the lender credit requirements, and must move to an area that is covered under the scheme. This programme will particularly benefit those who can pay monthly mortgages but do not have the deposit saved away.

Leader of Essex County Council David Finch said to Heart: "Getting on the property ladder is an important part of family life. The guarantees we're providing will help hard-working families who are scrimping and saving for the deposit needed for their first home before they are even considered for a mortgage.

"It will also support sustainable housing and construction growth, which boosts jobs, as well as helping out the high street as people invest in giving their new homes a personal touch."

The scheme will be run on a first-come-first-served basis, and if it is deemed a success, it may be implemented across the rest of the UK over the next year.
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