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    Council helping first time buyers


Worcester’s MP has given a warm welcome to the pledge from Worcester’s Conservative City Council team to put £1 million into a scheme to help first time buyers.

 He has urged them to look at the “Local Lend a hand” scheme, which brings together help from councils and from the bank Lloyds TSB to help first time buyers build a deposit. The scheme allows the buyer to put in 5% of the value of a property, their local district council another 5% and the bank 5% making it much easier for people to get their first step on the housing ladder.

Raising a deposit is a crucial challenge for many first time buyers looking to take their first steps onto the property ladder, and is highlighted by many as the key hurdle to buying their first home. For the first two years of the Coalition government there was a stamp duty freeze for first time buyers but take up was disappointingly low due to the difficulty of getting mortgages and the enormous challenge of raising the deposits of 20% or more which most mortgage lenders require.

Unlike some shared ownership schemes, this one allows the property buyer to own the property in its entirety and, so long as they are able to pay their mortgage, means that they take a big step up the housing ladder and it also comes with a low fixed rate, which helps keep payments manageable.

Stephen Noakes, commercial director, mortgages at Lloyds TSB explained why they launched their scheme.


"We know that a lot of young people turn to the Bank of Mum and Dad to get their foot on the ladder, but that's not a solution for everyone. By developing Local Lend a Hand and working with local authorities across the UK, we're broadening the prospect of home ownership to even more first time buyers.”


"Helping people to buy their first home is crucial in achieving and maintaining a sustainable housing market. With Local Lend a Hand, we're taking our existing Lend a Hand product to another level and addressing the real challenges first time buyers face."


Simon Geraghty, the Leader of Worcester City Council and of the Conservative group said


“We are committed to putting one million pounds into supporting first time buyers to get on the property ladder, we understand how difficult it is for people to get a property of their own and we want to give people a helping hand. This supports aspiration and it could also help to free up rented and social properties for those who need them most.”


Robin Walker, Worcester’s MP commented

“I am delighted that we have a city council that, alongside supporting business, recognises the vital need to help young people onto the housing ladder. It is incredibly hard for people to save for the deposit on a first home and it is great that we have Worcester City Council investing in scheme such as this that would really help. Along with the government’s investment in right to buy, the launch of the new homes bonus and the recent announcement of the first buy scheme, this initiative will help to get the housing market moving again and give many more people the chance to own their own home.”

Notes to editors


How Local Lend a Hand works


Each local authority agrees where in their area the scheme will be available.

Subject to usual lending criteria, first time buyers will then be able to view properties within that area and choose their new home.

Local Lend a Hand is for loans between £25,000 and £350,000, but the maximum loan size will be dependent on the local authority.

The first time buyer will put down at least 5% of the value of the property, and get the Local Lend a Hand mortgage for the remaining amount.

The local authority will provide a cash backed indemnity of up to 20% of the property value as additional security. Interest will be earned on this amount.

The first time buyer will own the property in its entirety (unlike shared ownership schemes).

The fixed rate mortgage products that will be available for first time buyers during this scheme will be at a lower rate of interest than would normally be available for this level of deposit, helping them with the cost of their monthly payments.


For more information please see


Other government schemes to support first time buyers

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