First time buyers in Broadland area of Norfolk to get help onto housing ladder

Broadland council is pumping �1m into a scheme which will help up to 40 people get on the housing ladder by helping them get the deposit to buy a home.

The authority has joined forces with Lloyds TSB to help first time buyers buy a home with a deposit of just 5pc. The Local Lend a Hand product is available from today in local branches of Lloyds TSB.

Broadland is the first local authority in the eastern region to take part in the scheme and has set aside �1m which should help 30 to 40 buyers on to the property ladder.

Lloyds TSB worked with Sector Treasury Services, part of the Capita Group, to develop the Local Lend a Hand product.

The scheme enables borrowers to buy their first home with a smaller deposit than that required by most mortgage lenders. The fixed rate mortgage products that will be available during this scheme will also be at a lower rate of interest than would normally be available for this level of deposit.

Broadland council leader Andrew Proctor said: 'There are a lot of families, couples and other first time buyers who can afford to meet monthly mortgage repayments, but have no chance of scraping together the initial deposit, which remains an impossible dream for many.

'This scheme finally gives them the chance of owning their own bricks and mortar without having to find what for most is an impossible sum to save up.

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'The council is committed to doing all we can to help families get a home of their own, and to help kick start the housing market. The money set aside in this fund will continue to earn a competitive rate of interest for council taxpayers, so we have a good return on our investment.'

Stephen Noakes, commercial director, mortgages, said the scheme made the housing market more accessible to more people.

He added: 'Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market. Local Lend a Hand addresses some of the real problems that prospective buyers in Broadland might face.'

Borrowers will be able to select any existing property in the Broadland council area - excluding new build homes - up to a maximum loan of �152,000. First time buyers will put down 5pc of the property price, instead of the 25pc which is often necessary, and Broadland will provide a cash backed indemnity of up to 20pc as additional security. The local authority then earns interest on this amount.

The first time buyer owns the property in its entirety, and will have access to a range of products at a lower rate of interest than would normally be available for this level of deposit.

Those interested in the local scheme should visit their local branch of Lloyds TSB for more information.

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