Helping hand for 300 home buyers

ABOUT 300 first time house buyers in Warrington could soon be getting a helping hand with their mortgages from the borough council.
Town Hall chiefs have confirmed that the council will take part in the national Local Authority Mortgage Scheme.
The scheme was first reported by Warrington-Worldwide last month – and since then the council has received numerous enquiries about it.
Warrington is one of up to 11 councils who will trial the scheme and many other authorities across the country are taking a keen interest in the outcome.
The initiative will see the council “topping up” the deposits of people who are working and live in the borough, to bridge the gap between the cost of a typical 75 per cent and 95 per cent loan offered by banks and other lenders. The council will provide financial assistance to fund up to 20 per cent of a first time buyer’s mortgage, by lodging the funds with the mortgage lender. But they will only incur actual costs if a loss is incurred by the mortgage lender within five years..
A £5 million commitment to the initiative over five years has been included in Warrington budget.
Cllr Paul Campbell, the council’s finance chief, said: “This scheme has a lot of benefits for Warrington – especially young people living with their parents who would like to get on the property ladder.
“We are investing rather than spending. The scheme doesn’t promote risky lending and the return on the investment will be reinvested in frontline services.”
According to the Land Registry of England and Wales, the average price of a house in Warrington was £186 049 during the last quarter of last year..