New deposit Scheme for First Time Buyers in partnership between Council and Credit Union - GLASGOW

[stu007]

This week, Glasgow councillors are expected to agree to a new partnership with Glasgow Credit Union.

 

The two year pilot Partnership Mortgage Guarantee Scheme will provide house hunters who can afford to pay a mortgage but cannot raise the necessary deposit.

 

At present, lenders are demanding deposits of between 5% and 25%, which for many people on low incomes is impossible to raise.

 

Glasgow Credit Union will allocate up to £4million in mortgage funding over the period.

 

The council will act as a guarantor for the loan over a maximum five year period, up to a maximum of 20% of the original mortgage amount in the first year, reducing to 10% by year five.

 

READ MORE HERE: http://www.eveningtimes.co.uk/news/13584721.Deposit_scheme_boost_for_first_time_buyers/

[mariner51]

I thought George Osborne had instigated/proposed a similar scheme to boost housebuilding, or was that just for England?

Does not address problem of T's deposits, which would be more in keeping with the Credit Union ethos.