City of Lincoln Council to help first-time buyers
First-time buyers in Lincoln could get part of their mortgage deposits covered by their council.
The City of Lincoln Council proposes to set aside £2m to underwrite and guarantee a percentage of borrowing for mortgages under £100,000.
It is part of a two-year £4m spending plan which the council hopes will stimulate the local economy.
A similar mortgage scheme by South Kesteven District Council is expected to be approved at a meeting later.
The City of Lincoln Council says its scheme will help borrowers access mortgages at a more affordable rate, as they would not have to pay a large deposit by themselves.
Angela Andrews, director of resources, explained how it would work.
"We are going to be working with some of the large high street lenders and providing an indemnity with those lenders to enable first-time buyers to buy those properties that they can afford to buy but can't afford the actual large deposit," she said.
The scheme would only be available to people from Lincoln who are buying inside the city.
The £4m programme of spending is expected to be approved at a full council meeting next week.
Other investments include £125,000 towards a day centre from homeless people with mental health and alcohol problems.
The council also intends to spend £150,000 establishing a fund to help small social enterprises or businesses.
The council's existing apprenticeship scheme will be extended to younger people at a cost of £75,000.
Allotments will also be improved at a cost of £75,000.
South Kesteven District Council's mortgage scheme was announced in November, and is expected to be approved at a full council meeting this afternoon.
The council intends to initially set aside £1m for first-time buyers, see what the uptake is, then make up to £5m available.