Mortgage plan for first time buyers in Leicestershire

A local authority in Leicestershire is planning to lend money to a bank as part of a £10m scheme to help first time buyers in the county.

Leicestershire County Council has been working with Lloyds TSB to provide mortgages with a five per cent deposit.

The authority said it will lend the bank money from its reserves and after five years the bank will repay it, plus interest.

About 400 people across the county will benefit from the project.

The scheme allows the bank to offer mortgages of up to £142,500, reducing the size of deposit that first time buyers have to find, said the authority.

Mr Rushton, acting leader of Leicestershire County Council, said: "We know first time buyers are struggling, so it makes sense to lend the bank some of our reserves, to help them get on the property ladder.

"This helps people into homes, boosts the economy and enables the council to get its money back, with interest, from the bank."

A similar scheme has already been set up in Blaby, with the help of the district council.

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