FIRST-TIME buyers have been among the most prominent victims of the latest “boom and bust” economic cycle. When house prices were soaring, the cost of a home became prohibitive. Now, in the middle of a credit crunch, affordable mortgages are extremely hard to come by.

But now there is light at the end of the tunnel, with Liverpool city council offering bridging loans to help first-time buyers get on the property ladder.

The scheme will allow new owners to top-up the amount they are able to borrow from traditional mortgage lenders, by offering first-time buyers help to raise the full deposit needed for a mortgage.

If, for example, the buyer needed to raise a £20,000 deposit, but only had £5,000, the £15,000 difference would be offered in the form of an equity loan.

It was initially planned that the loans would be offered to people seeking to buy in Housing Market Renewal Initiative areas. Now, however, it will be extended to take in the entire city.

The indications are that “several hundred” people a year could be helped through the initiative.

The proposal for bridging loans is being made against the backdrop of continuing grim news in the property sector. From June to December, 2007, the number of residential property sales in the “L postcode” area fell by 25%, and it is believed this decrease has continued apace since then.

The Labour opposition said it was broadly in favour of the scheme, but that it would need to be closely monitored to reduce the risk of the council losing money, as has been the case with the US sub-prime loans fiasco, which was what kick-started the whole credit crunch mess.

Anything that helps to get the moribund housing market moving again has got to be a positive development, and it is good to see that this plan – provided it is properly monitored – is attracting broad cross-party support.