So far 20 people have taken up the City of Lincoln Council’s mortgage help scheme, according to preliminary figures, after the offer launched in June.
The £1 million scheme can help up to 50 people in the city, and means new buyers only need to find a 5% deposit.
So far 7 have fully completed the scheme, using up £130,000 of the indemnity, 9 are in the process, amounting to £163,000 of the cash pot, and 4 are yet to find suitable homes.
The City Council launched the Local Lend a Hand scheme in collaboration with Lloyds TSB, which aims to help first-time buyers get onto the property ladder.
Prospective buyers can apply for a loan with Lloyds TSB on a house of up to £125,000, excluding new build homes.
The City of Lincoln Council provides a cash-backed indemnity of up to 20% as additional security. The Council then earns the interest on this amount.
One couple which benefitted the scheme so far is Lizzie Bruzas and partner Henry Rundle, who recently moved into their £117,000 Cecil Street home with the help of the scheme.
The pair had rented a house for over three years, saving for a mortgage deposit over the last 18 months. The scheme helped them put down a deposit on a house a couple of years earlier than expected.
New home owner Lizzie Bruzas said: “We were in limbo — we could afford mortgage payments, but as we were paying rent were not able to save a large amount towards a deposit. We were astonished when we found out that help was available to us. If it wasn’t for this scheme we would have been unable to buy for at least another three years.”
Councillor Ric Metcalfe, Leader of the City of Lincoln Council, said: “One of our priorities and commitments to residents is to ensure there is affordable housing available throughout the city. This scheme is one of many inititives we are running to help us achieve this aim.
“We hope to help up to 50 first time buyers in Lincoln to become home owners through the initiative. I encourage any first-time buyers in the city to check whether the scheme may be able to help them.”
There are still spaces left to apply for the scheme. For more information, visit a Lloyds TSB branch in Lincoln.