Manchester City Council announced a scheme this week aimed at helping first-time buyers get on the property ladder, with new affordable properties in the city and so-called “Manchester mortgages.”

Using funds currently lying around in the Greater Manchester Pension Fund, some 244 new homes will be built on five sites in Chorlton, Wythenshawe and Gorton, and will be available for purchase or rental.

As well as the actual house-building scheme, there will also be a mortgage-guarantee initiative, which will underwrite up to 20 per cent of the mortgage costs. Talks are currently ongoing with the the Co-operative Bank and the Manchester Building Society to administer the “Manchester mortgage” scheme, which would allow potential home-buyers to borrow a 95 per cent loan-to-value (LTV) mortgage at the same cost as the average 75 per cent LTV deal, cutting down the amount needed for a deposit.

If successful, this pilot scheme will be rolled out more widely over the course of the next 10 years, said Manchester City Council’s executive member for neighbourhood services, Councillor Paul Andrews.

Speaking to the Manchester Evening News, he added: “In the current economic climate, the levels of development being brought forward and the availability of mortgage finance are not keeping pace with the city’s needs.”

“That’s why the council, working with Greater Manchester Pension Fund and the Homes and Communities Agency, is looking to bring forward an innovative new model for investing in new housing which will help address this issue.”

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