Another 50 first-time buyers to get five per cent mortgage

ANOTHER 50 first-time Oldham buyers could share a £1 million council mortgage boost to help them get on the property ladder.

They will be able to borrow up to £133,000 with a deposit of only five per cent rather than the typical 20-25 five per cent — meaning their 95 per cent mortgage will come on the same terms as a 75 per cent one.

The council will indemnify lenders for the difference between a five per cent and up to 25 per cent

deposit. The money will be repaid over five to seven years with interest.

Oldham set up its first £1 million mortgage scheme with Lloyds TSB in February 2012. It was the first of its kind in Greater Manchester and helped 55 first-time buyers. To date there have been no cases of arrears or non-payments, and the council expects its money to be returned with interest after five years.

If approved by the cabinet on Monday, the second scheme could help another 50 buyers.

Councillor Dave Hibbert, cabinet member for housing, said: “We are determined to help as many people as possible to buy their own property while not encouraging people to take on unreasonable debt.

“Not everybody wants to get onto the property ladder. For those who do, we will do whatever we can to help.”

In 2002, first-time buyers in Oldham only needed a £4,922 deposit compared with the £16,532 in today’s market — a 235 per cent increase.