TWO first-time buyers are close to moving into their new homes in Rugby, thanks to a mortgage scheme.
Lloyds TSB in Rugby have been inundated with requests from first-time buyers interested to find out more about the Local Lend a Hand scheme since it was launched in the town just two weeks ago.
The scheme is a partnership between the bank and Rugby Borough Council (RBC) which has seen the authority set aside £1 million to help people get on to the property ladder by provided a cash backed indemnity of up to 20 per cent.
A spokesman for Rugby Borough Council said this week: “It’s good news. Lloyds has approved the first two applications. They have had lots of people come in and make enquiries. They don’t remember a busier time, which is remarkable.
“There are lots of applications in principle but two people have actually found houses, had offers accepted and the funds approved.
“This is a time when the bank would normally expect a slump but it’s a complete turn around because of the Local Lend a Hand scheme.”
The Local Lend a Hand scheme has already proved a huge success in other towns where it has been rolled out across the country.
With the 20 per cent indemnity provided by the council, it means that the buyer only has to find a five per cent deposit - meaning they have 25 per cent in total to put down.
Rugby Borough Council is hoping that the £1 million it is providing should held 30 to 40 buyers on to the property ladder.
In turn it is thought that those first-time buyers will help kick-start the Rugby property market as it will enable others to move on up the chain.
The spokesman for Rugby Borough Council added: “This is a very promising start.”