Council mortgage plan could help people on to housing ladder
ABERDEENSHIRE councillors will consider a bold measure that could ease the pressure on North-east people looking to buy their own homes when the local authority’s policy and resources committee meets on Thursday.
Councillors will consider a recommendation to approve the set-up of a Local Authority Mortgage Scheme (LAMS), which would see potential house-buyers get part of their loan guaranteed by the local authority, leaving purchasers to raise a smaller deposit.
A report which will be put before councillors says: “There is a clear shortfall in the supply of affordable housing across Aberdeenshire.”
The combination of high house prices and caution over lending, says the report, which was written by Aberdeenshire Council housing manager Janelle Clark and principal accountant Chris Smith, is frustrating many people’s efforts to get on the property ladder.
“Many potential first-time buyers, including those on council housing waiting lists or those currently occupying affordable or social housing units, are unable to save a sufficient deposit, even though they could afford mortgage payments on a typical first home,” states the report.
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