Witney News - New loan to help people get on the property ladder

New loan to help people get on the property ladder

Loans up to £50,000 are being made available as part of a new scheme to help residents get onto the property ladder in West Oxfordshire.

The equity loans, which will be secured against the value of the property purchased, are aimed at helping people who are unable to purchase a property on the open market through other means.

West Oxfordshire District Council is providing funding for the Open Market HomeBuy scheme, which is being run by Sovereign Housing Group. The Council will lend a maximum of £25,000 which will be matched by a maximum loan of £25,000 from Sovereign.

The scheme is intended for people who are able to gain a mortgage and use their savings to partly fund a property, but are unable to cover the full cost. Loans can be provided to make up the difference in order to meet the purchase price and used as deposits to help secure the mortgage finance that is needed.

Cllr Verena Hunt, the District Council’s Cabinet Member for Housing, said: “Despite the recession and falling house prices, it is still extremely expensive to purchase a home in West Oxfordshire. The economic situation has also meant that securing a mortgage has become more difficult and larger deposits are required.

“We recognise that there is a need for more affordable housing and the Council is committed to helping with this. This new scheme is part of the work that is happening to address this issue and we hope that it will assist some of our residents to take the step towards owning their home.”

To be considered for a loan, applicants need to:

Be unable to purchase on the open market through other methods
Have a household income of less than £60,000
Have a local connection with West Oxfordshire

Priority will be given to first-time buyers and existing housing association tenants, and loans can be used to help towards the purchase of suitable properties in West Oxfordshire up to the value of £250,000.

Chance for people to find out more

Anyone interested in finding out if they are eligible for the scheme can book a slot at an open day on Monday 27 September, 12.30-7.00pm, at the District Council Offices in Woodgreen, Witney, OX28 1NB. To book, call 01993 861010, or for more details, 0845 6021 618. Further information is also available on the Council’s website at www.westoxon.gov.uk/homebuy.

Tony Quigley, Sovereign Housing Group’s Director of Homeownership, said: “‘I am delighted that we are working in partnership with West Oxfordshire District Council on this scheme that allows
working families on modest incomes to meet their aspirations of affordable home ownership’.