A Colwyn Bay cllr (involved with the regeneration of Erskine Rd, Lawson Rd area, and also Clwydd Alyn wrote in the local paper around 3 years ago that there were problems for people (like his son), living in Colwyn Bay buying a house or a flat in Colwyn Bay.
Clwydd Alan has bought houses in Lawson Rd and Erswkine Rd to sell 'cheap' for people like this cllrs son, and a stipulation that the person 'must have connections with Colwyn Bay'.
A house is for sale in Lawson Road for a 60% share at around £80,000, which means they have priced it at around £135.00 (for a 2 or 3 bed) when 5 beds in the same area sell for this, and flats for as low as under £20.000 in Lawson Road.
No building society would give a 95% mortgage on an over priced house, as it the person lost their job and defaulted, the house would be repossessed and then sold, and the building society would want their money back. So they will ony give e.g. a 75% mortgage
Oops --- the cllr's son still can't get a house or flat in Colwyn Bay unless:
A £1MILLION fund could be set up by Conwy County Borough Council to help first time buyers get on the housing market.
In the first move of its kind by a council in Wales, the authority would plug the gap between the mortgage offer and deposit needed to secure a loan.
If approved the council would not give money to lenders but would provide indemnities to help cover the cost between the loan and deposit.
If a buyer with a deposit of £5,000 wanted to buy a house valued at £100,000, but the lender’s policies would only permit a loan of 75 per cent the council would provide an indemnity to the lender for up to £20,000, thus allowing the lender to lend the potential buyer a total of £95,000.
It is hoped that the fund, also known as the Local Authority Mortgage Scheme, would help first time buyers on to the property ladder in the area. The lack of such buyers has continued to depress the housing market during the recession, which in turn has had an adverse effect on the local economy.
The recent turmoil in the banking and financial sectors has seen a reduction of LTV mortgages from 95 per cent down to 75 per cent, meaning buyers now could have to place a 25% deposit. The scheme would see the council provide assistance to the buyer through an indemnity, which would make up the shortfall.
One of the recommendations of the report put forward to cabinet yesterday (Tuesday) is that the maximum value of property to qualify for the scheme shall be £140,000, index linked as appropriate.
Often reporting problems to Clwydd Alan does not solve the problem, so why not report your problems on this blog so people know how bad (or good) Clwydd Alan are to their 'customers'. Simply send an e.mail to clwyddalan.reports@blogger.com and it will appear on this blog. You can also attach a picture.
