The MI New Home 95 per cent mortgage scheme has helped more than 500 Scottish households on their way to achieving home ownership aspirations.
This scheme is similar to NewBuy in England where borrowers – first -time buyers and home movers – put down a 5 to 10 per cent deposit on a new build property.
Homes for Scotland launched the scheme in partnership with lenders and the Scottish government last autumn to help creditworthy buyers locked out of the market by high deposit requirements buy a new build home up to £250,000.
Backed by Bank of Scotland, Nationwide and RBS, the scheme now has 25 participating builders, more than double the launch figure.
Homes for Scotland chief executive Philip Hogg said: “Home ownership is the long-term tenure of choice for 78 per cent of Scots but with buyers previously having to find an average 25 per cent deposit, such high requirements have been preventing many making their desired move.
“By increasing the range of options open to those who can sustainably afford monthly mortgage payments at what are very competitive rates but have limited deposit funding, MI New Home helps to ease this problem.”
Nicola Noble, head of mortgages at Bank of Scotland, commented: “It’s extremely encouraging that more than double the number of builders are participating in the scheme since it was launched. We hope to see an increase in this number as the scheme develops, providing a much needed boost to housing supply.”
Moray McDonald, head of mortgages at RBS, said: “With RBS being one of the first banks to lend money through the MI New Home Scheme, I’m especially pleased that 500 families across Scotland have now been able to realise their dream in buying their own home.
“Our policy as a responsible lender is to lend to customers who can afford to borrow and the scheme has helped us to do that. We’re currently saying ‘Yes’ to nine out of 10 customers who apply for a mortgage with us.”
Derek Pollard of IFA Mortgageforce Scotland is used to guiding buyers through the MI New Home mortgage application process and said: “The MI New Home scheme has been a very important addition to the Scottish housing market, enabling those with a real appetite to buy to do so sooner rather than later with monthly mortgage payments that are both competitive and sustainable for them.
“In fact, with only a £7,500 deposit required on a £150,000 home purchase, MI New Home mortgage rates are some of the most keenly priced in the whole market.”
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MI New Home mortgage rates (as at 25 July 2013)
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Further information on MI New Home and a full listing of participating builders can be found at http://www.minewhome.co.uk.
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