Help for hopeful homeowners in pipeline

First-time buyers in Rochdale could be given a helping hand to get on the housing ladder after councillors backed plans to introduce a new Local Authority Mortgage scheme.

Under the proposed scheme, prospective home owners would only need a 5% deposit to buy their first home with Rochdale Borough Council guaranteeing a further 20% to provide access to lower mortgage rates.

Buyers would still need to be able to afford their mortgage repayments but would not need to save the large deposit lenders now ask for.

The council is working with Sector Treasury Services and Lloyds TSB to agree a scheme which could be launched in August.

Councillor Terry Linden, Cabinet Member for Regulatory Services and Housing, said: “We know how difficult it can be for prospective home buyers to get together the money for a deposit.

“That’s why developing this scheme is so important – it would help local people take their first step on the housing ladder and also keep the borough’s housing market moving benefiting those people who already own homes but want to move.”

More information about the scheme will be available later this month.