The scheme allows for first-time buyers to purchase a home with a minimum deposit of just 5% with the help of their local authority. Fifteen local authorities, including East Lothian, Blackpool, Newcastle-under-Lyme and Warrington, have agreed to put money in the scheme to top up the deposits of first-time buyers trying to buy a home in their area.
The scheme launched in branches of Lloyds TSB on 1 July this year.
Tirrochi, who bought in Blackpool, said: “It was one of those situations where we were looking for a catch but there wasn’t one.
“It would have taken us a while longer to save for a larger deposit and get on the ladder otherwise. We got a much better rate and had to pay much less of a deposit.”
Fred Jackson, deputy leader at Blackpool council, said: “It is great news that, after a few months, we are already seeing first-time buyers in Blackpool get the keys to their first home.
“These are the first steps to helping up to 200 homebuyers in the area and this will only boost the local housing market as a whole.”
Stephen Noakes, commercial director for mortgages at Lloyds TSB, said: “The aim of local lend a hand is to make the housing market more accessible to first-time buyers and it’s great to see Gianpaulo and Kathryn move into their new home so quickly with the help of the scheme.
“It shows that 'local lend a hand' really is providing a solution for people that might otherwise be put off by the size of the deposit they’d need.”
First-time buyers are able to select a property within the local authority area and borrow up to a maximum loan size of £130,000.
They will put down 5% of the property price and the authority will provide a cash backed indemnity of up to 20% as additional security. The local authority then earns interest on this amount.
The first-time buyers owns the property in its entirety and has access to products at a lower rate of interest than would normally be available for this level of deposit.
