A SINGLE father is one of the first people in Rugby to be given a boost onto the property ladder thanks to a £1m new housing scheme.
Kelvin Pugh, 29, lives at home with his parents in Fisher Avenue, Rugby, because he can’t afford to buy his own house and doesn’t want to waste money on renting.
He has joint custody of his little boy Finlay, five, and has been struggling to save up enough for a hefty deposit required by the banks.
However he is now one of the first people in Rugby to take advantage of a new scheme to help first-time buyers purchase a home with a deposit of just five per cent.
The Local Lend a Hand scheme is a partnership between Lloyds TSB and local authorities which was officially launched in Rugby on Tuesday. It has already been rolled out in a few other parts of the country.
As part of the scheme Rugby Borough Council has set aside £1 million which should help 30 to 40 buyers on to the property ladder by providing a cash backed indemnity of up to 20 per cent. This will mean the buyer has a total of a 25 per cent deposit to put down.
Kelvin, who is a golf sales manager, said: “I used to live with Finlay’s mother in a rented place but the relationship broke down and I moved home. I have 50 per cent access to my son. We’ve each got our own room at my parents but we get under their feet. I’m nearly 30 and I need to have my own personal pace.”
Kelvin visited Lloyds TSB recently to discuss his finances and he was told about the mortgage scheme. With his savings and a bit extra from his parents Kelvin now has enough for the five per cent deposit required and can now start looking for a house for him and Finlay in Rugby.
Kelvin said: “This scheme is really good. It means that I can start investing in mine and Finlay’s future.”
As part of Local Lend a Hand, Kelvin and other people taking advantage of it will be able to buy a house in the area covered by Rugby Borough Council up to a maximum loan of £120,000. Despite having a 20 per cent input from the council, the buyer will own the property in its entirety.
The buyer will also be given a fixed rate mortgage product at a lower rate of interest than would normally be available for this level of deposit.
James Salter, branch manager at Lloyds TSB in Church Street, said: “This is a win win situation for everyone. This will help get 30 to 40 people onto the ladder and boost the Rugby maHome at lastrket at the same time. This is a fantastic opportunity.”
The buyer will also not be required to pay the 20 per deposit back to the council - it will simply be withdrawn after a fixed term. During that time the council will earn interest on the money.
Cllr Leigh Hunt, portfolio holder for sustainable inclusive communities at Rugby Borough Council, said: “For the first time in Rugby we have a scheme that will help first-time buyers to raise a deposit and get on to the property ladder. Alongside other measures, such as building new social housing and redesignating some of our sheltered accommodation, we are providing more housing options that meet the needs of our communities.”
Anyone interested in the scheme can visit Lloyds TSB in Rugby for more information.