LOANS of up to £50,000 are being offered to West Oxfordshire residents who are struggling to get a foot on the property ladder.

The money is being made available as part of a new scheme by West Oxfordshire District Council – but applicants must be local.

The council will lend up to a maximum £25,000 which will be matched pound for pound by the Sovereign Housing Group.

The equity loans will be secured against the value of the property purchased.

The scheme is intended for those who are able to get a mortgage and partly fund a property but are unable to cover the full cost.

The loan can meet the difference or be used for deposits.

The first three years are interest free and the money only needs to be paid back when the property is sold, the final mortgage installment is paid, or at the end of 25 years. In years four and five, interest is paid at a rate of 1.75 per cent, rising to 3.25 per cent until year 10, and 3.75 per cent for the remaining life of the loan.

Verena Hunt, the district council’s cabinet member for housing, said: “Despite the recession and falling house prices, it is still extremely expensive to purchase a home in West Oxfordshire.

“The economic situation has also meant that securing a mortgage has become more difficult and larger deposits are required.

“We recognise that there is a need for more affordable housing and the council is committed to helping with this.

“This new scheme is part of the work that is happening to address this issue and we hope that it will assist some of our residents to take the step towards owning their home.”

To be considered for a loan, applicants must be unable to purchase on the open market through other methods, have a household income of less than £60,000 and have a local connection with West Oxfordshire.

Priority will be given to first-time buyers and existing housing association tenants and homes must cost no more than £250,000.

Based on current offers, the average four-bedroom house in Witney is £433,580 with a two-bed flat £175,430.

By comparison, similar properties in Hull would cost £243,226 and £124,643.

Tony Quigley, Sovereign Housing Group’s director of home ownership, said: “I am delighted that we are working in partnership with West Oxfordshire District Council on this scheme that allows working families on modest incomes to meet their aspirations of affordable home ownership.”

Martyn Cox, of Witney estate agents Martyn R Cox & Co, said the scheme could help buyers.

He said of the market: “Finding a large enough deposit is far more of a problem now than it was five years ago.

“The deposits that were required at the peak of the market were less. That amounts needed now is what holds first time buyers back.”

Anyone who wants to find out if they are eligible for the scheme can book a slot at an open day on Monday, September 27, from 12.30pm to 7pm, at the district council offices in Wood Green, Witney.

witney@oxfordmail.co.uk To book a place at the open day, call 01993 861010.

Further information is also available on the council’s website at west oxon.gov.uk/homebuy

  • Will these loans help you? Send us your views at ews@oxfordmail.co.uk or ring 01865 425500.