First time buyers can now apply for a cheaper mortgage deal, with as little as a 5% deposit, following the launch of a £2m Derbyshire County Council support scheme.

County Council Leader Andrew Lewer has officially launched the Local Lend a Hand in Derbyshire scheme at the Matlock branch of partner Lloyds TSB.

It will support at least 58 first time buyers who might otherwise not get a mortgage.

First time buyers meeting the scheme's criteria will be eligible for a Lloyds TSB mortgage with a lower rate of interest than would normally be available, if they can raise a minimum 5% deposit.

-- Advertisement --

Councillor Lewer said: "I am delighted to launch our Local Lend a Hand in Derbyshire scheme which is great news for first time buyers and the county's economy.

"It can be very difficult for some people to get on the property ladder because of the high cost levels of existing 95% mortgage deals.

"Our link up with Lloyds TSB makes it more affordable for people to take what is an exciting step in their life by buying their first home.

"We also know that every first time buyer sparks, on average, another four transactions further up the chain, so this provides a genuine boost for the local economy."

The Local Lend a Hand in Derbyshire scheme only applies to existing homes - not new builds - to maximise the positive knock on effect it will have further up the chain.

The maximum loan value is £142,500, meaning borrowers - subject to Lloyd's TSB's usual lending criteria - could purchase a property up to the value of £150,000 with a minimum 5% deposit of £7,500, on properties with a qualifying postcode.

(CD)