Feb 02 2009
Local authority mortgages (UK)
In the 1950’s, 1960’s and 1970’s it was common for Brits to get a mortgage from their local authority, rather than a bank or building society. In return, the authority made a little profit on behalf of the taxpayer.
Well, it looks like the local authority mortgage might be back. The communities and Local government department has cut the standard national rate at which local authorities are allowed to lend from 5.07% to 3.93%.
Some councils are keener than others to lend to homeowners. The authorities that have expressed interest are Portsmouth, Manchester, Bristol, Hackney and Lambeth - but phone your local council and see what they have on offer.
The beauty of a local authority mortgage is that they might be willing to lend with a smaller deposit than those demanded by banks and building societies.
