Stockport agrees support for first-time buyers

Stockport Council has agreed £3m worth of support for first-time buyers through the Local Authority Mortgage Scheme.

LAMS enables borrowers to access 95% mortgages at the rate normally offered on a 75% mortgage.

The 20% difference is guaranteed by councils for five years through a mortgage indemnity provided via a large scale deposit with the lender.

The lender can only call down this indemnity if the property is repossessed and the subsequent sale does not realise the outstanding capital owed to the lender.

Cllr Sue Derbyshire, leader of Stockport Council, said: "This is a pioneering scheme which will give first-time buyers a helping hand onto the property ladder and give a significant boost to the housing market in Stockport.

"The council will be providing £3m of support into this scheme, which we expect will assist over 100 first-time buyers to get onto the property ladder.

"This would create a chain effect which is likely to facilitate the sale of another 300-360 properties across the borough, boosting the local economy."

LAMS was developed by Sector, which provides finance, social housing and consultancy services to UK public service organisations.