Derby £1m city council mortgage scheme unveiled
- 3 November 2012
- From the section Derby
First-time buyers in Derby are set to get help from the city council with a £1m deposit scheme.
The authority said many would-be homeowners could afford the repayments on a mortgage but not the deposit.
The scheme would see the council supply deposits of up to 20% on homes which would be held as surety against any default.
It would be available for property in Derby worth £150,000 or less and could help up to 40 families.
Councillor Sarah Russell, Cabinet Member for Business, Finance and Democracy, said: "Many people who want to get on the property ladder, including those who are renting from private landlords and are unable to save a big enough deposit, even though they could afford the mortgage repayments.
"This initiative is designed to bridge the gap. The scheme is all about making the housing market more accessible to people in our city."
The scheme would be administered by a mortgage lender yet to be appointed by the council.
Cabinet will consider the proposed mortgage scheme on 7 November.