lend a hand scheme FAQs
what is the lend a hand scheme?
what should prospective first time buyers do?
what are the conditions of the scheme?
does the scheme only apply to new houses?
what if the purchaser defaults on their repayments?
will the home buyer own all of the property?
does the council get a return on its money?
what is the lend a hand scheme?
Lloyds TSB and Broadland District Council have joined forces to help first time buyers purchase a home with a deposit of just 5%. The Local Lend a Hand product became available in local branches of Lloyds TSB from 16 January 2012.
what should prospective first time buyers do?
Would be buyers should inquire at any branch of Lloyds TSB - not the council - to see if they are eligible for the scheme under the bank's usual lending criteria.
what are the conditions of the scheme?
Buyers can come from any part of the country, but must be moving to a property in the area covered by Broadland District Council. The maximum loan they can borrow is for £152,000 which means that with their share of the deposit, the cost of the new home would typically be around £160,000.
does the scheme only apply to new houses?
No. Unlikely the scheme being planned by the Coalition Government, almost all existing properties in Broadland qualify.
how does the scheme work?
Broadland has deposited £1m with Lloyds TSB which will used to indemnify up to 20 per cent of the deposit on a qualifying first time buyer's new home, leaving them to find a much more realistic five per cent. The added bonus is that almost always that will mean lower monthly mortgage repayments. Buyers can put down more as a deposit if they wish.
what if the purchaser defaults on their repayments?
If there are mortgage arrears in the last six months of the five year period of the scheme, it could be extended to seven years, depending on the circumstances. In the event of repossession and a subsequent shortfall sale, Lloyds TSB will call on funds provided by Broadland to make up the shortfall.
why is the scheme needed?
Many aspiring home owners can afford monthly mortgage repayments, but have little or no chance of finding a sizeable deposit, particularly at a time when many lenders are introducing stricter lending criteria.
will the home buyer own all of the property?
Yes. Unlike shared ownership schemes, the new buyer owns the entire property.
does the council get a return on its money?
Yes. Lloyds TSB will pay Broadland interest on the £1m deposited, and after the five year lifetime of the scheme, the council will receive its investment back, minus any defaults.
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contact us
| Communications |
|---|
| Broadland District Council Thorpe Lodge 1 Yarmouth Road Thorpe St Andrew Norwich NR7 0DU |
| tel: 01603 430523 |
| fax: 01603 430614 |
| email: news@broadland.gov.uk |