Manchester City Council looks set to announce a â€˜Manchester Mortgageâ€™ in the coming weeks, offering first-time buyers in the city a mortgage with just a five per cent deposit on properties up to the value of Â£142,500.
The scheme, which is similar to programmes already in place in nearby Oldham, Trafford and Rochdale, will see the council help struggling home-buyers access mortgages through Manchester Building Society and the Co-operative Bank, by underwriting up to 20 per cent of their loans.
It is anticipated the scheme will receive final sign-off -with a maximum Â£6m risk- from the councilâ€™s executive committee in late November.
Here at The House Crowd, we believe any reputable scheme aimed at providing a pathway to home ownership should be applauded. However, given that the council stands to receive at least Â£500 from partner lenders for every loan set up under the scheme, as well as boosts to council tax revenues, it is important to reiterate that programmes such as this need to be implemented with wholly transparent purposes to be successful. Hereâ€™s trusting this one is…
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