An initiative launched by Peterborough City Council and Lloyds TSB to help first time buyers has been hailed a massive success.

The Local Lend a Hand Scheme began in December with the aim of helping people get on to the property ladder.

Figures released reveal that so far:

•There have been 94 enquiries about the scheme.

•Seven people have already secured a mortgage and are working towards moving to their new homes.

•Twenty-four others have a mortgages agreed in principle and are searching for a property.

If all 31 mortgage deals are followed through by customers, around £360,000 of the £1 million the city council set aside for first-time buyers will be used up.


Councillor Marco Cereste, leader of Peterborough City Council and Cabinet Member for Growth, Strategic Planning, Economic Development and Business Engagement, said: “As the city council, we want to help people in these difficult financial times. Helping first-time buyers will give the wider economy another boost.

"The number of people enquiring about the scheme and then taking the next steps towards securing a mortgage is really encouraging. However, I’d like to see even more people coming forward because once the initial pot of money we set aside is used up, we can look to increase it to £10 million - and help even more first-time buyers."

Many mortgage providers currently need first-time buyers to provide a deposit of up to 25 per cent.

But under the Local Lend a Hand Scheme, first time buyers in Peterborough needing a mortgage up to the value of £123,500, need to provide a deposit of five per cent.

The other 20 per cent will come from a £1 million indemnity by the city council. The city council earns interest on this amount. The first time buyer is purchasing the property in its entirety.

(CD/GK)