Council explores mortgage solution to help local people

A local authority is thought to be the first in the UK to explore the piloting of an innovative new approach to helping local people finance self-build homes.

Published: Monday, 12th March 2018

A local authority is thought to be the first in the UK to explore the piloting of an innovative new approach to helping local people finance self-build homes.

From Tuesday, 3 April, residents of Cherwell will be able to apply for accessible mortgages on homes at Graven Hill in Bicester, the UK’s largest self and custom build site. The pilot was announced at a Graven Hill self-build event on Saturday, 10 March.

With Cherwell District Council working with a panel of lenders, indemnifying up to 20 per cent of each mortgage, borrowers only need a five per cent deposit. The council has allocated up to £2.5m in development finance to assist with the construction of the self-build homes.

Cllr Barry Wood, leader of the council, said: “We’re aware that lots of people love the dream of building their own home, but can find the up-front costs off-putting. I’m proud that we are exploring a way to offer our own residents and people who work in Cherwell this innovative solution. The pilot scheme will make it easier for people to build their own home without needing vast sums set aside to cover building costs.”

The criteria for the mortgage scheme stipulate that applicants must have a local connection with Cherwell district.

Further information will be available on the council’s website in the lead-up to 3 April.