Mansfield Building Society, which launched lending partnerships earlier this year with Bassetlaw and Ashfield District Councils to help local people get a start on the housing ladder, has cut the rate of interest on its Local Authority Mortgage Scheme (LAMS) from 4.99% to 4.39%.
The councils provide a guarantee for up to 20% of the value of the mortgage and the funding is designed to help people looking to purchase a first property, but who do not have a significant deposit. With the guarantee, prospective buyers can get a 95% mortgage on a lower rate than would normally be available.
Gev Lynott, chief executive of the Mansfield, claimed the move to reduce the rate was another demonstration of the mutual’s commitment to its local roots.
He said: “The Mansfield has always maintained a strong affiliation to the community it serves. We have worked very hard in partnership with the local authorities to provide the mechanism, through the LAMS scheme, to help more local people buy their first home.
“By reducing the rate at this time, we hope to signal a clear message that our commitment to see more local people take up the opportunity to be homeowners is stronger than ever.”