CDC offers a helping hand to local first-time buyers

Release date:  1 May 2014

Cotswold District Council, in partnership with Lloyds Bank, is aiming to help first-time buyers purchase a home with a deposit of 5%. The Council has set aside £1m which should help between 20 and 30 buyers on to the property ladder through the Local Lend a Hand scheme, which is available in local branches of Lloyds Bank.

First-time buyers often say that raising a deposit is the biggest challenge they face when looking to take their first steps onto the property ladder. The Local Lend a Hand scheme will help buyers who can afford a mortgage, but have not previously been able to build up the necessary deposit.

Cotswold District Council leader Cabinet Member for Planning and Housing, Cllr Sue Jepson, comments:

“We want to draw attention to this scheme which should make it easier for young people in the district who want to secure a mortgage on a home for the first time.  House prices are higher than average in this part of the country and young residents often have to find a substantial amount of money for a deposit if they ever want to own their own property.  This scheme can make a real difference to their lives because the financial advantages on offer can make home ownership much more attainable.

“Many potential first-time buyers in Cotswold district, including those on the Council’s housing register, or currently occupying affordable or social housing units, are unable to save a sufficient deposit, even though they could afford mortgage repayments on a typical first home. Hopefully, this initiative should help them overcome that first financial hurdle. It also means that the Council may be able to free up social housing for the more vulnerable, and reduce payments to private landlords for expensive short-term accommodation. If more young people are able to buy their first home, it should also benefit the wider local economy.”

Subject to Lloyds Bank's usual lending criteria, borrowers are able to select any existing property in the area covered by Cotswold District Council up to a maximum loan of £237,500. First-time buyers will put down a minimum 5% of the property price, and Cotswold District Council will provide a cash backed indemnity of up to 20% as additional security.   The local authority then earns interest on this amount.

The first-time buyer owns the property in its entirety, and will have access to a range of products at a lower rate of interest than would normally be available for this level of deposit.

Those interested in the local scheme should visit their local branch of Lloyds Bank for more information.



In the event of repossession and subsequent shortfall sale, Lloyds Bank will call on funds provided by the local authority to make up the shortfall.

Cotswold District Council
Trinity Road