Teachers in Luton hoping to buy their first home could find the solution they seek in a new scheme supported by Luton Borough Council and 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 Council will indemnify a proportion of the loan to enable the lender to provide a 95% mortgage on favourable terms.
Teachers Building Society is a national lender providing mortgages to teachers and education professionals. In order to be eligible for the scheme in Luton the following criteria must be met:
- The applicant must be a teacher or educational professional
- The maximum property value is £157,850
- The property must be within the borough
- The applicant must be a first-time buyer
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 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.”
Councillor Tom Shaw, Portfolio Holder for housing in Luton, said: "We are very pleased to expand our Local Authority Mortgage Scheme which has already helped many local families onto the property ladder since we launched it last year. One of the biggest barriers to home ownership for many young teachers is the large deposit usually required, so it is great to be able to offer something more affordable.
"The dream of owning your own home is now a reality for many teachers which would not have been possible without this initiative. This is the least we can do for their hard work and dedication towards improving the lives of Luton's schoolchildren. Increasing home ownership also helps us ease local demand for social housing so I would like to thank the Teachers Building Society for their partnership and commitment to getting this scheme up and running."
If you are a teacher in Luton and would like to find out more, you can contact Teachers Building Society on 0800 378 669. For joint applications, only one applicant needs to work in education. Please note that this scheme is subject to limited availability.