Teachers and education professionals hoping to buy their first home could find the solution they seek in a new scheme supported by Teachers Building Society.
The Local Authority Mortgage Scheme aims to help potential first-time buyers who could afford monthly mortgage repayments but have difficulty raising the deposit currently required by most lenders to obtain a residential mortgage. Under the scheme, the Local Authority will indemnify a proportion of the loan to provide lenders with the reassurance they seek in order to lend up to 95% of the purchase price of a property.
Several lenders are supporting the scheme, including Teachers Building Society, a national lender providing mortgages to teachers and education professionals.
Alan Gravett, head of sales & marketing at Teachers Building Society, says, “As an organisation founded with the purpose of helping teachers to buy their own home, we are very happy to support the Local Authority Mortgage Scheme (LAMS). We hope that it will enable many more teachers to realise their dream of home ownership and we will apply the normal criteria when assessing cases, which we always treat on an individual basis, alongside a fast and friendly service.”
A national scheme, LAMS was developed by Sector Treasury Services. Sector ran pilot schemes with several local authorities in 2011. Cecilie Booth, company director said: “The combination of relatively high house prices and understandable caution over lending from banks and building societies means that many potential first-time buyers are unable to save a sufficient deposit even though they could afford mortgage repayments on a typical first home.
This initiative is designed to bridge that gap. More people will be able to take the step of buying their first home, stimulating the local housing market and benefitting the wider local economy.”
Many local authorities are participating in the scheme and Teachers Building Society is currently in talks with several authorities to plan regional launches this Spring.
Teachers and education professionals interested to find out more can contact Teachers Building Society on 0800 378 669. Lines are open Monday-Friday, 8am to 6pm. For joint applications, only one applicant needs to work in education.
If you are not a teacher, other lenders supporting the scheme include Lloyds TSB, Saffron Building Society, Leek United Building Society and Furness Building Society.