A NEW project to help first-time buyers get on the property ladder is set to be launched by the Government.
Under the Local Authority Mortgage Scheme, £2 million will be invested by both district and county councils to help people buy their first home.
District councillor David Bebb, cabinet member for performance and efficiency at Braintree District Council, said: "The combination of high house prices and caution over lending from banks means many potential first-time buyers cannot save a sufficient deposit, even though they could afford mortgage payments on a typical first home.
"This scheme is designed to bridge that gap. Together with Essex County Council, we can encourage young people to buy a property in the district."
Under the plan, people will only need a five per cent deposit, with the council guaranteeing a further 20 per cent of the loan. It means a first-time buyer will be able to get a 95 per cent mortgage on the same terms as a 75 per cent mortgage from a high street lender. The maximum loan from a lender will be set at £237,500, enabling borrowers to buy a home of up to £250,000.
Details of the scheme are yet to be finalised, but it is expected to be launched in July.
