Two first-time buyers in Rugby are preparing to move into their first home together in town thanks to a £1 million council initiative.
Matthew Moran and Sian James from Bilton have been given the chance to buy their first home thanks to the ongoing Local Lend a Hand scheme.
The scheme, a £1 million investment package involving Lloyds Bank and Rugby Borough Council, was launched in 2011 to give first-time buyers the chance to buy a home with a deposit of just five per cent.
Currently living with parents, the couple are aiming to complete on their new Victorian terraced house before Christmas.
Matthew, a 26-year-old pilot, said: “I work for an airline and I’m currently training to become a commercial pilot, which can be an expensive process. “The five per cent deposit on our first house appealed to me because it allows me to save more of my money and put this towards flying lessons and training.
“We knew about the Lend a Hand scheme, but couldn’t find any friends or family to help with the deposit, however as soon as we knew the council offered the Local Lend a Hand, we didn’t hesitate.
“It’s very hard for young people to get enough money for a deposit, a ten per cent deposit was just too much for us, but perhaps this scheme will help many to do something about it and get a foothold on the property ladder.”
The Local Lend a Hand scheme allows borrowers to select any existing property in the area covered by Rugby Borough Council up to a maximum loan of £120,000. First time buyers will put down a minimum five per cent of the property price, and Rugby Borough Council will provide a cash-backed indemnity of up to 20 per cent as additional security.
Cllr Leigh Hunt, Rugby Borough Council’s portfolio holder for sustainable inclusive communities, said: “Local Lend a Hand was a first in Rugby, helping first-time buyers raise a deposit and gain a step on the property ladder.
“Alongside other initiatives, such as building new social housing and investing in our sheltered accommodation, the council has shown its determination to provide more housing options to meet the needs of our communities.”
The scheme is expected to help a further 22 buyers in the area. Anyone interested in finding out more can visit the local Lloyds branch.