Council plans to develop a Local Authority Housing Scheme

CARMARTHENSHIRE County Council is planning to develop a Local Authority Mortgage Scheme aimed at helping first-time buyers on to the property ladder.

Members of the Executive Board will hear about the scheme at their next meeting on April 16 when they will be asked to support the initiative.

The council proposes to help people who can afford monthly mortgage repayments, but cannot provide the large deposit which most mortgage lenders now demand.

Providing the buyer meets normal mortgage eligibility criteria, the council will provide an indemnity for 20 per cent of the total value of the mortgage.

This would mean that the buyer would only have to find a five per cent deposit and could secure a 95 per cent mortgage on similar terms as a 75 per cent mortgage.

They could then buy a property of their choice up to the value of £120,000 within the Carmarthenshire boundary.

Chris Moore, Head of Financial Services, said: “This scheme would provide a relatively low-risk opportunity for us to help first-time buyers on to the housing ladder while assisting the local housing market and relieving local demand for social housing.”

If the scheme is backed by Executive Board and Full Council, it could be launched as early as the autumn.

Similar schemes have already been launched successfully in other parts of the UK, and here in Carmarthenshire it would be expected to provide first-time buyers with an alternative to the Affordable Home scheme, which tends to be restricted to new-build developments.