New scheme helps first-time buyers on to the property ladder
West Berkshire Council and Newbury Building Society launch ‘First Step, Next Step’
A NEW loan scheme from West Berkshire Council and Newbury Building Society is hoped to help local people take their first step on the housing ladder.
‘First Step, Next Step’ is an equity loan scheme targeted at (but not exclusively) first-time buyers, providing a top-up for housing deposits.
The news comes after the Newbury Weekly News revealed the extent of the difficulties buyers were facing in West Berkshire, with house prices increasing at double the national rate.
Figures from the Land Registry released earlier this month, showed the average house price in the district stands at almost £295,000, more than 14 per cent higher than in February 2015, and more than £30,000 higher than the average across the South East of England.
West Berkshire Council said buyers could now secure a loan as a percentage of the value of the home, and buyers could borrow up to £30,000 to help with their purchase.
The loan is interest free, but borrowers would be liable to pay the percentage of equity stake when they sell the house or after 10 years, whichever is sooner.
For example, a loan of £10,000 on a property costing £100,000 equates to an equity stake of 10 per cent. Then, if the value of the home increases to £120,000, the borrower would repay £12,000.
The head of housing at West Berkshire Council, June Graves, said: “It has never been more difficult to get a foot on the property ladder.
“Therefore, I’m delighted that, in partnership with Newbury Building Society, we are able to offer practical help to people who want to buy their own home and are most in need of a helping hand to achieve that goal.
“Many people are so close to home ownership and the ‘First Step, Next Step’ aims to bridge that small gap to make it happen.”
Lending manager of Newbury Building Society, Roger Knight, said: “An equity loan can help raise the money needed to use as a deposit to purchase your own home. ‘First Step, Next Step’ can help you get there.”
People meeting the application criteria can apply by completing the ‘First Step, Next Step’ application form at www.westberks.gov.uk/equityloan, or, for further information about the scheme, call (01635) 519629.
