Family is our only hope of getting on property ladder

Jun 11 2009 by Samantha Castle, North Wales Weekly News

A YOUNG Tal-y-Bont couple are hoping a helping hand from family will finally get them on the property ladder after a government incentive scheme fell through.

First time buyers Lydia Bradshaw and partner Mark Carroll have applied and failed for just about every government scheme going in a desperate bid to get on the property ladder. The young couple almost gave up hope of ever finding a way to afford a deposit of anything from 10% to 20% of the house cost.

“Considering the current economic climate, the government should be welcoming and encouraging first time buyers, however our experience has been anything but encouraging,” explained Lydia, 21.

“Our first stumbling block was the deposit, the ironic thing was we could easily afford to pay the mortgage repayments because we are both in secure full-time jobs, but it is impossible to rise that kind of money. So we looked towards what incentives the government could offer us as first time buyers.”

The couple opted for a government incentive scheme that would pay the deposit and they would pay a monthly fee along side their mortgage.

Lydia added: “We applied for the scheme and found a house and managed to get a mortgage, it was all a very lengthy process as any home buyer will sympathise. However we were shocked to learn in the end the government could no longer help us as they had ran out of money.

“Mark and myself were back at step one, all we wanted was to secure a future for ourselves and lay down some foundations. We eventually tried another incentive scheme and re-applied for a mortgage but we were then turned down because we are both aged under 25 and considered a risk.”

Lydia and Mark have eventually opted for the Lloyds TSB Lend a Hand mortgage scheme in which a family member or friend has to stump up a 20% deposit.

Lloyds TSBs Lend a Hand mortgage is designed to help first-time buyers onto the property ladder as it is available for loans up to 95% of the property.

While the borrower only needs to put down a deposit of 5%, his or her parents, grandparents or friends, must set a further 20% of the property's value against the loan. This money will be held in a savings account paying a fixed rate of 3.5%. No money can be taken out of the account until the borrower has built up a 10% equity stake in the property.

Lydia’s dad Neil added: “It is a good job we, as parents, were in a position to help Lydia and Mark with the deposit otherwise they had no other options but to live apart until they were both 25. We are just glad we can help but we feel their frustration towards the government.”

Clwyd West AM, Darren Millar, said: “Banks and building societies were, to a large extent, responsible for the current lending crisis and I think that it is responsible for them to withdraw the opportunity for young couples simply on the basis of their age.

“Given their role in the recession – I believe that they have a moral responsibility towards helping credit worthy couples, regardless of their age, to get on the property ladder.

“Ageism in lending is unacceptable.”