First-time buyers in Manchester could have an advantage over their counterparts in the rest of the UK, if a mortgage loan scheme goes ahead.
The Manchester Evening News reports that the proposed mortgage relief scheme could see first-time buyers secure a 95 per cent mortgage but the impact on their finances would be similar to that of a 75 per cent mortgage.
According to the local newspaper, Manchester Council is in talks with the Co-operative Bank and Manchester Building Society to secure support and ensure the mortgage guarantee scheme goes ahead.
Housing supply in Manchester is reported to have hit an all-time low, with sales dropping by about 75 per cent in the past five years.
First-time buyers are a necessary part of the market allowing first-time sellers to move up the property ladder.
The mortgage scheme ties in with an injection of £25 million towards the production of an estimated 250 new homes.
The projects are expected to be rolled out during the next ten years to deal with the housing shortage in the area.
If the mortgage scheme goes ahead, Manchester buyers will benefit over their UK counterparts who are struggling to secure a mortgage in a market that is choice-poor with not enough first-time sellers listing their properties for sale.