Decision details

To consider a report of the Cabinet Member for Housing seeking a decision in regard to whether to participate in the Local Authority Mortgage Scheme. This would assist first time buyers access mortgages from established Lenders.

To consider the information about the Local Authority Mortgage Scheme and make any recommendations to Council that are considered appropriate, subject to resolving the outstanding legal issues to the satisfaction of the Director of Corporate Services. 

1.  First time buyers within the city are struggling to obtain mortgages, largely due to the requirement for larger deposits.

2.  The Local Authority Mortgage Scheme is a national scheme that works to enable first time buyers to access mortgages with smaller deposits.

3.  Legal Services advise that a further view on the State Aid implications is required before the scheme is launched, this may include the Council filing an application requesting the UK Government make formal notification to the European Commission and seeking clearance on State Aid.

1.  Not to fund the scheme locally. This would mean that the only help for first time buyers requiring financial assistance would be from the national scheme recently launched (‘NewBuy’). However, the national scheme only applies to new build homes built by certain developers and the Lloyds scheme specifically excludes new build so they are complimentary in assisting first time buyers.

2.  To fund mortgages direct.

3.  Not to fund this scheme at the current time but reconsider this at a future time.