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Introduction

Local authority mortgage scheme is aimed at helping first time buyers in Hastings. Given the economic conditions banks and building societies currently require large deposits. Where people are able to get a higher value mortgage at present they are having to pay higher interest rates and higher fees.

This scheme will mean a first time buyer within Hastings will be able to get a 95% mortgage on the same terms as a 75% mortgage from a leading high street mortgage lender. This means the first time buyer does not need such a large deposit and will have a more affordable mortgage rate. The scheme will be operated by a major high street lender and the normal credit checks and lending criteria will apply. The scheme does not apply to new builds where there are already assistance schemes in place.

To make sure the largest number of first time buyers can take advantage of the scheme, the Council has limited the size of loan to £150,000 (ie. 95% of a £157,900 purchase price). This should enable between 33 and 50 first time buyers to benefit on a first come first served basis.

The Council is guaranteeing the bank/mortgage lender the difference between the 95% and 75% of the mortgage for an initial period of 5 years. The Council deposits £1m with the bank/mortgage lender and gets it back (with interest) after 5 years. The first time borrower receives a mortgage at a more affordable rate with a lower deposit (for whatever period they are looking for eg. 25/30 years).

The planned launch date is 10 January 2012. 

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Frequently asked questions

How do I apply?

The scheme is not yet available. When launched you will need to apply directly to the mortgage lender.
The scheme has received approval by the Council in principle. The Council has not yet received all the legal documentation from the mortgage lender in order to complete the legal agreements and launch the scheme.

Who is eligible?

First time buyers purchasing a property within Hastings (i.e. within Hastings Borough Council's boundary). The mortgage lender's normal lending criteria will apply and the lender's normal credit checks will be undertaken.

When will it be available?

We believe in January 2012 - but this will depend upon having the legal agreements etc, in place.

Who do I contact?

The Scheme will be administered solely by the major mortgage lender. Contact details will be added as soon as they are available.

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