Angus Council opts out of lending struggling first-time buyers a hand
A new local authority mortgage scheme that assists first-time buyers will not be available in Angus.
- Published in the Courier : 19.09.11
- Published online : 19.09.11 @ 08.43am
Councillors have decided not to implement the scheme that is intended to benefit people who have fallen victim to the financial crisis, giving them a help to home ownership.
The scheme provides help to first-time buyers who can afford the regular mortgage payments on a home but are not able to provide the initial deposit necessary to purchase a house.
If potential buyers meet certain criteria, a participating local authority then agrees to provide a guarantee for up to 20% of the purchase price of the property.
The deal allows the potential buyer to get a 95% mortgage on similar terms to a 75% mortgage because the interest rate charged is more favourable than would normally be available to borrowers with small deposits.
Angus Council has decided not to back the scheme and to give priority to other housing commitments and initiatives meantime. But the door has been left open to reconsider the scheme at a future date.
The scheme was established not only to help would-be home owners suffering as a result of the economic crisis but also to assist the construction industry during the downturn.
Colin McMahon, Angus Council's director of corporate services said people applying for help under the scheme, which has financial implications for Angus Council, did not necessarily have to live in the county. Assistance to such incomers would not help reduce the authority's own housing waiting list.
Mr McMahon said: "Applications can come from anywhere in the UK, meaning first time buyers outwith the Angus area can apply for the scheme — for example a resident in Dundee looking to move to Angus, and therefore not helping the council's housing waiting list."
Angus struggles to meet the demand for affordable housing and the council is involved in a number of schemes to try and meet the need.
The Local Authority Mortgage Scheme (LAMS) is developed by Treasury management advisors in conjunction with a number of Scottish and English local authorities to assist first-time house buyers.
Continued...
10.11am - 19.09.2011 The Third Way - Forfar, Scotland Report This
Angus Council seem to be saying that there are only two options for housing i.e. Social housing and buying. No mention of the excellent quality and affordability in the private rental market. In Forfar it is possible to rent a modern quality 2 bed flat for £375 i.e not much more than social housing.
07.44pm - 19.09.2011 Thornindaside - perth, scotland Report This
In Perth the council are pushing people towards the private sector through it's private sector leasing scheme.A 2 bed flat on it's site costs between £450 and £500 which is considerably higher than social housing rents,and in Perth local earnings are below the national average.
01.45pm - 27.09.2011 Clair - Forfar, Angus Report This
Private rent for a one bedroom flat in Forfar is in the Area of £340 per month, add on all the other bills then for a single person that is alot of money compared to the £39? a week for renting through angus council.
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