Wirral council preparing mortgage lending scheme

Sep 2 2009 by Kevin Core, Birkenhead News

WIRRAL home buyers struggling to get on the property ladder could soon get a mortgage loan from their council.

A new report to Wirral’s Cabinet outlines which areas will be eligible to apply for 30% of the property value under the planned Home Purchase Assistance Loan (HPAL).

Leader Steve Foulkes believes Wirral can use its expertise as the administering authority of Merseyside Pension Fund to assist residents who are being turned down by the big banks since the credit crunch.

It will initially only be offered within the Housing Market Renewal Initiative areas, Bidston and St James, Birkenhead and Tranmere, Rock Ferry, Seacombe, Liscard, Claughton, Oxton and Bromborough.

Depending on applicant numbers however, the scheme could be rolled out across the borough.

It will be funded using £740,000 from the government’s “Growth Point” initiative.

For a person on £33,552 a year, the average income on the borough, seeking a property costing £124,950, the council could provide £37,485.

The buyer still provides the deposit.