A council facing serious financial problems is considering providing mortgages for people struggling to get a home loan because of the credit crunch.
Cash-strapped Northumberland County Council - which is having to make budget cuts of up to £50m over two years - is thinking of using its capital resources to help would-be home buyers who are being frustrated by the continued squeeze on lending.
A report is being prepared for the Liberal Democrat executive in March on the possibility of the authority giving mortgages "in certain circumstances" to applicants unable to secure a loan from commercial lenders.
A residential home near Wooler has received the highest possible rating following an inspection by a governing body.

The Care Quality Commission, the independent regulator of social care in England, visited the Old Vicarage Residential Home unannounced. After a thorough 6 hour inspection the home was awarded the top rating of "3 Stars - Excellent Service".
Long-lying snow cover has taken its toll of barn owls in Northumberland. Barn owls have been slowly recovering after hitting a population low 20 years ago .
More than 400 nest boxes have been put up for the birds in Northumberland in the last 10 years,
But the recent snow and ice has hit the birds hard, with 15 dead owls having been found so far.
Culling is still an effective tool in the fight against grey squirrels if done properly, say conservation experts as they begin a new programme of extermination.
Seven culling projects have received £24,000 and will soon begin in the North East - including several in strategic areas of Northumberland - in an attempt to save red squirrel populations from the grey onslaught.
The work will try to thin the number of greys so that the much-loved red squirrels have less competition and less of a chance of catching the dreaded squirrel pox virus.
A new £18.4m package of budget cuts is being proposed by council leaders in Northumberland, as they await a crucial Government decision which could potentially leave them having to save a further £10m.
The Liberal Democrat administration at County Hall has drawn up the revised savings for 2010/11 after carrying out public consultations on initial £16m proposals published in November.

They will be discussed by the executive next week - and are based on the assumption the Government will allow the council to capitalise its £10m redundancy costs this year, cushioning the impact on the revenue budget.
A row has erupted in Northumberland over the action being taken to tackle the plague of potholes which is facing drivers following the recent big freeze.
Political opponents on the county council have clashed over a demand for a better system of repairs and maintenance - amid claims that 'small craters' have appeared on some roads which are both dangerous and potentially damaging.
Conservative councillors are calling on the Liberal Democrat administration to urgently bring in an improved system for looking after roads, pavements and bridges - and have condemned what they say is the current 'muddle through' approach.
Farmers who help clear snow-blocked roads should be supported by the Government rather than threatened for using red diesel while doing so, said Berwick MP Sir Alan Beith.
Sir Alan raised the issue after the Government praised farmers for their public-spirited help while at the same time warning they could not use red diesel in snow-clearing machinery in certain places.
The NFU last week sent out guidelines to members based on information from HM Revenue & Customs covering when the fuel could and could not be used.
Organisers of a North East country show are holding a quiz next week.
The Glendale Agricultural Society is holding its annual members quiz next Tuesday at the Tankerville Arms Hotel in Wooler at 7pm. Teams of four are invited to register their entry in advance by phone 01668 283868 or email info@glendaleshow.com
A Northumberland farmer whose leg was amputated after an accident is backing the next phase of the Make the Promise campaign to reduce agricultural-related injuries and deaths.
Mark Mather was unable to work for more than a year after the shotgun he was carrying fired both barrels into his leg, even though the safety catch was on.

Farmer Mark Mather from Wooler with Richard Bulmer from the Health and Safety Executive with 38 promise knots to represent farmers who have lost their lives
He had to hire extra help at Haugh Head Farm, near Wooler, while he was recuperating, which put the business under financial pressure.
Rescue crews in Northumberland will be on standby for flooding this weekend amid gloomy forecasts.
Snow has not fully thawed in all parts of the county following last week's downfall and some areas were hit again on Wednesday night.

Predictions for the county on Saturday are for heavy rain and temperatures of between three and five degrees celsius.





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