Council to consider mortgage plan

First-time buyers and low income families affected by the credit crunch could soon be helped onto the property ladder by Liverpool City Council.

The authority is considering proposals to offer council-backed loans to people who are having problems getting them from banks or building societies.

The idea, floated by councillor Flo Clucas, will now be the subject of a feasibility study.

She hopes the plan could kick-start the market where prices have slumped.

'Frozen out'

"Many years ago, lots of councils used to provide mortgages to those who found it really difficult to get a mortgage on the commercial market," she said.

"We believe that in the current situation there is a role for us in that."

She said the loans would not be open to everybody, but aimed at those "frozen out" of the property market.

"Obviously people who come to us would have to satisfy certain criteria, they would have to for example be in work, they would have to demonstrate that their work is not short term, and that they were actually going to stay in the city."

If the plan gets the go ahead, Liverpool would become the first local authority in the country to re-enter the housing market.

E-mail this to a friend

Printable version