Council bid to support first time buyers

Rochdale Council Cabinet has approved, in principle, for the council to participate in a Greater Manchester Mortgage Scheme.

The aim of the scheme is to help first time buyers who can afford mortgage payments, but not the initial deposit, to get on to the property ladder.

Councillors agreed, in principle, that £2million be put forward to supplement the potential Growing Places funding allocation for GM Mortgage Scheme.

A report before councillors at a meeting of Cabinet on Monday (30 January) read: “The supplementary funding will be provided through prudential borrowing the source of which has not yet been identified. Final approval with regard to participation in the scheme and for the provision of supplementary funding will be subject to an assessment of the operational arrangements and criteria and the results of an internal appraisal to assess the financial and legal risks to the Council.”

The decision has been made because the Association of Greater Manchester Authorities (AMGA) is seeking feedback from the 10 Greater Manchester Local Authorities on the following issues:

Confirmation on whether they wish to participate in a Greater Manchester
LAMS

An indication as to whether they are prepared to provide additional funding for the scheme though the cash-backed or unfunded indemnity options.
 Any additional funding provided by local authorities will be utilised to provide additional mortgage support to eligible applicants within their respective districts.