Help for first time buyers with 95% mortgage scheme

First-time buyers in Leicestershire can apply for mortgages under a new scheme being launched today which require as little as a 5% deposit, half the amount that would usually be required.

The new scheme named 'Lend a Hand', has been launched by Leicestershire County Council and Lloyds TSB and they hope to help 400 first time buyers get onto the property ladder.

The County Council is lending £10 million to enable the bank to provide affordable mortgages to people struggling to buy their first property.

Money experts from the Consumer Credit Counselling Service say:

One first-time buyer has been given a mortgage through the scheme is 24-year-old Christina East from Melton.

Christina has been given a 95% mortgage, a total of £91,000, meaning she only had to put down a £4,500 deposit rather than the usual 10% of £9,000.

Christina's mortgage will mean repayments of £300 over 45 years.