Council to help first-time buyers get on the housing ladder

Arun District Council has joined a national scheme that helps first-time buyers purchase their own home.

The Council’s Cabinet approved the introduction the Local Authority Mortgage Scheme (LAMS) when it met on Monday, 8 February, 2016.

The initiative was set up to address the issue of first-time buyers being unable to afford a deposit and consequently remaining in social housing because they are not able to buy their own home.

Under the scheme, a first-time buyer receives a 95% mortgage on similar terms to a 75% mortgage but without the need to provide the substantial deposit usually required.

The buyer has to meet criteria set by the Council and be approved following a credit check by the lender. The Council also sets the size of the loan and the level of guarantee.

Research has shown that more than 96% of all LAMS mortgages granted have been taken up by people living locally.

Councillor Dudley Wensley, Deputy Leader of Arun District Council and Cabinet Member for Corporate Governance, said: “The introduction of this initiative is great news for those struggling to get a foot on the housing ladder.

"The LAMS fits perfectly with the Council’s priority of supporting those in need.”

The scheme will be run by Capita Asset Service on behalf of Arun District Council.

The initiative will now be discussed at the Full Council meeting on Wednesday,16 March, 2016.