People looking to buy a home for the first time in the Watford region are being given a helping hand by Watford Borough Council and their Local Authority Mortgage Scheme.
This scheme allows people to get on the first rung of the property ladder with only a 5% deposit and without the crippling terms that might usually come with such an arrangement.
Applicants will still need to be able to afford the mortgage repayments, but not have to have the larger deposits, which can be in the region of £30,000 for even the cheapest properties, by providing an indemnity for up to 20% of the value.
The scheme is available from two lenders, Lloyds TSB and Leeds Building Society, and details can be gained from the local branches of both. The offer is open to anyone wishing to buy a first property throughout Hertfordshire as part of a wider government scheme designed to reinvigorate the housing market.
The scheme hopes to assist 500 new buyers throughout the county; Tim Batten, the Regional Sales Manager at Leeds Building Society commented, "We are delighted that we are working in partnership for the benefit of people in Watford.
"We have offered mortgages throughout the economic downturn and continue to increase lending, particularly to first-time-buyers."
Watford Mayor, Dorothy Thornhill said, "By supporting this scheme, we should be able to help out some of our first time buyers in the town. It means they can get a 95 per cent mortgage on similar terms as a 75 per cent mortgage but without the large deposit.”
A total budget of £12 million has been put aside by the Council, but only first time buyers with a minimum 5% deposit, and who can meet the repayments on a 95% mortgage will be eligible. Prospective buyers will also be required to meet the normal lending criteria in order to gain the necessary mortgage.
Are you a first time buyer? For further information, please call Leeds Building Society's Branch Manager, Adam Rea on 01923 240 589 or by email.