Climbing the property ladder: Mutuals offer hope to first-time homebuyers with top deals | This is Money

Climbing the property ladder: Mutuals offer hope to first-time homebuyers with top deals | This is Money

Fireman Matt Champion, 28, bought his first home in Cosby, Leicestershire, in December 2011 under Local Lend a Hand. His district council of Blaby acted as the guarantor for 20 per cent of the purchase price and Matt, together with girlfriend Charlene Raine, 26, a legal assistant, put down a five per cent deposit on the £132,500 property.
This scheme offers a three-year fixed rate at 4.49 per cent with a £995 fee or 5.09 per cent with no fee. The council remains as guarantor for five years.
The aim of both Lend a Hand and Local Lend a Hand is that the borrower will build up enough equity to be able to remortgage at more competitive rates, without the need for a guarantor, in the future. Matt says: ‘Lend a Hand has meant the difference between us getting on the ladder or just renting for years.’
On Friday, Yorkshire Building Society released figures showing it has increased the number of loans to first-time buyers by 32 per cent in the first half of the year, compared with 13 per cent by all lenders.