Helping hand for first-time buyers

Council Leader Jim McMahon, John Coughnan Local Mortgage Manager, Ayesha Ashraf Local Manager, Roy Gardner Local Director.

MORTGAGES requiring a deposit of only 5 per cent are now available through a scheme launched by Oldham Council and Lloyds TSB.

The Chronicle revealed in February how struggling first-time buyers were set to be given a vital leg-up on to the property ladder thanks to the landmark council plans.

Council chiefs have joined forces with the banking giant to offer the 95 per cent mortgages to help kick-start the borough’s ailing housing market, which witnessed an unparalleled slump during the recession.

The Local Lend a Hand product is now on offer from local branches of Lloyds TSB, which worked with Sector Treasury Services, part of the Capita Group, to develop the mortgage.

It involves the council underwriting up to 20 per cent of the loan, allowing homebuyers to borrow on similar terms to a 75 per cent mortgage.

Oldham is the first local authority in Greater Manchester to get such a scheme off the ground.

Subject to Lloyds TSB’s usual lending criteria, borrowers are able to select any property within the local area (excluding new build properties), up to a maximum loan size of £133,000. Those interested in the scheme should visit their local branch of Lloyds TSB for more information.

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