First-time buyers in Cumbria are being given a helping hand onto the property ladder via an arrangement between Penrith Building Society and Eden District Council.
The Eden Mortgage Boost Scheme is a 95 per cent loan-to-value mortgage with the mortgage guarantee premium paid by Eden District Council from its affordable housing budget.
When lenders lend more than 75 per cent of the value of a property they must have insurance so this is where the local council steps in. The council has allocated £30,000 for the first year of the scheme which will help 15 people buy a home in the local area.
Amyn Fazal, chief executive of Penrith Building Society, said: “The Eden Boost Scheme is quite innovative. Basically the borrower needs to find the 5 per cent deposit, the council pay the mortgage guarantee premium and we pay the legals and valuation (subject to certain caveats) and do not charge an application fee.
“The scheme is open to residents in the Eden Valley District and on properties up to £150,000 as it’s aimed at first-time buyers and those that may have fallen off the property ladder for other reasons, such as matrimonial.”
Loading ...