First time buyers may not only find it difficult to secure
a mortgage but also the large deposit required, which can be up to
20% of the value of the property.
The Council has piloted a scheme in Milford where up to
50% of the property value was loaned to households
whose annual income was on or below £30,000. The loan is only
repayable when the householder leaves the property. This scheme met
the affordable housing definition as it was targeted at households
earning average or below average incomes with a mortgage less
than 25% of their income. The scheme proved to be extremely
successful and further schemes were introduced covering Langley
Mill, Somercotes, Alfreton and the current Heanor West Scheme.
The Homes and Communities Agency (HCA) provide support for
a number of initiatives aimed at helping people buy a home
(normally for the first time). The initiatives include 'shared
ownership' schemes for new and older properties and equity loan
schemes. HCA also support housing association tenants to purchase
the property they currently live in.
A number of private developers are now offering their own
equity loan schemes in an effort to create movement within the