Issue - meetings
Consideration of the Implementation of a Local Authority Mortgage Scheme (LAMS) in Wirral
Meeting: 27/09/2012 - Cabinet (Item 93)
A report by the Director of Housing, Planning and Regeneration provided the Cabinet with an update on the current situation regarding housing market support, the availability of mortgages and analysed how these issues were affecting Wirral. The Director’s report also set out an overview of the Local Authority Mortgage Scheme and how this could be implemented in Wirral.
RESOLVED: That the Cabinet
(1) notes the contribution of the range of programmes/packages to assist home buyers including first time buyers, the Affordable Homes Programme Framework to support home ownership in Wirral;
(2) supports the move forward with the implementation of a Local Authority Mortgage Scheme in Wirral on the basis of a non-cash backed indemnity following advice from Wirral’s Treasury Management Advisors;
(3) approves an initial scheme to provide financial guarantees up to the value of £2m and funding of up to £38,000 be earmarked from the fee income to cover any estimated potential defaults which may occur;
(4) gives delegated authority to the Acting Monitoring Officer to enter into any appropriate deeds with a lender or lenders on behalf of the Council for the purposes of implementing a Local Authority Mortgage Scheme and indemnify him personally in respect of such letters of opinion and other legal documents as he might be required to provide to participating lenders;
(5) approves the eligibility criteria set out in Appendix A of the report as the basis of supporting the wider objectives of increasing availability of affordable homes to first-time buyers and supporting home ownership; and
(6) gives delegated authority to the Cabinet Portfolio Holder for Housing and the Director of Regeneration, Housing and Planning for any amendments to be undertaken to the policy, as necessary, due to changing circumstances i.e. average house prices, changes to lenders criteria.