The Glasgow City Council and Glasgow Credit Union have unveiled a partnership which will help buyers get onto the property ladder, which is especially positive news for first-time buyers.
The partnership has been approved by the council’s executive committee, and is a pilot scheme which will last for two years. Its intention is to help improve the chances of people becoming homeowners, similar to Help to Buy schemes run by the government.
These schemes help prospective buyers who can technically afford a mortgage, but not the deposit required in the first place to secure a house.
The council will act as a guarantor on behalf of borrowers, and as much as £4m is being allocated to the funding of mortgages.
“For many, especially the younger generation, saving for a deposit for their first property can be an impossible task,” said June Walker, chief executive of the Glasgow Credit Union.
“This will provide them the opportunity to get onto the property ladder.”
Aiming for 50 first-time buyers to be attracted, it is an alternative to Help to Buy. Glasgow Credit Union only serves those living in the G postcode.