A new mortgage guarantee scheme has been launched by Manchester Building Society, Co-operative Bank and Manchester City Council to help first-time buyers.
Manchester Mortgage Guarantee Scheme will be open to first-time buyers looking for a home anywhere in the Manchester boundary worth up to £150,000. The buyer must also be able to afford a minimum 5% deposit to be eligible for up to 20% mortgage guarantee from the city council.
The city council will guarantee up to 20% of a first-time buyer's mortgage for up to five years – subject to appraisal from lenders – with an option to extend for a further two years if necessary.
Both the Manchester Building Society and the Co-operative Bank will be offering mortgages in conjunction with the scheme with a view to approving the first mortgages with MBS early in the New Year followed by the Co-operative.
MBS will primarily aim their mortgages at the second hand market, while the Cooperative will offer loans on new build homes as well.
Each lender will initially offer 100 mortgages as part of the Manchester Mortgage with the intention of expanding the scheme in the future.
David Cowie, chief executive of Manchester Building Society, said: "The scheme will act as a catalyst to increase the number of housing transactions in Manchester, which will reinforce housing values on both new and existing properties."