Discounted mortgages for first time buyers
Up to 500 first time buyers could get the keys to their first home with a new mortgage scheme supported by Nottinghamshire County Council.
Under the Local Authority Mortgage Scheme (LAMS), approved mortgage applicants only have to raise a 5% deposit for their first property. The remainder of the deposit - up to 25% - is underwritten by Nottinghamshire County Council.
This helps first time buyers get much more affordable interest rates - and lower monthly payments - for a much smaller deposit. This helps to bring down the overall cost of buying a house, opening more doors to more people.
According to property website Right Move, the current average property price in Nottinghamshire is £122,368.
For a property of that value, a first time buyer using the scheme would need to pay £6,118. The County Council would provide an indemnity equal to £24,473. This would give the applicant access to a mortgage on the same terms as they would get for a 25% deposit.
How to apply
- The Local Authority Mortgage Scheme is delivered by Lloyds Banking Group on behalf of Nottinghamshire County Council
- The scheme is only open to first time buyers purchasing a property in Nottinghamshire worth £150,000 or less
- Find your local branch of Lloyds TSB to apply.
Terms and conditions
Lloyds TSB will assess all Local Authority Mortgage Scheme applicants in exactly the same way they would for any mortgage application. Prospective buyers will still need to be able to afford their mortgage payments. However, by using the LAMS, applicants will only have to find a smaller initial outlay, whilst enjoying the more favourable terms of a 75% mortgage.
The scheme is available in every district of Nottinghamshire apart from Gedling Borough. Gedling Borough already has its own 'Local Lend a Hand Scheme' for first time buyers with Lloyds TSB.
Newark couple feel at home with mortgage support scheme
A young couple from Newark were the first people to be given a helping hand onto the housing ladder by the County Council's new mortgage support scheme.
Buying a dream home together looked like it would be a tough financial challenge for Karl Hopkinson (24) and Lucy Price (23).
But their dream home is now a reality after they were approved for a Local Lend a Hand mortgage, which means they only need to pay a 5% deposit for their first home, but will enjoy the same benefits as someone paying a 25% deposit.
For Karl and Lucy this means their monthly repayments will be around £100 lower than they would otherwise have been and they can use savings to kit out their new home instead of spending them on the deposit.
Karl said: "Applying for the mortgage was very quick and easy. Now we can't wait to get into our new home."
24 first time buyers have already benefited from the Local lend a Hand mortgage scheme, with around £500,000 of funds being used – 25% of the total budget set aside by the County Council.