Principality Building Society is working with house builders to give buyers with low deposits access to new build properties.
Borrowers can access mortgages of up to 95 per cent loan-to-value (LTV) via a brand new guarantee scheme.
The MIBS MIG Scheme, which is backed by a company called MI Business Solutions, allows house builders to buy an insurance policy that protects the higher proportion of the loan. This covers the risk to the mortgage provider of lending on a higher LTV loan.
Principality is the first lender to launch this scheme in Wales which is available only through the broker channel. The scheme will work in partnership with local and national builders operating within the society’s core lending area.
Christopher Johnson, head of mortgages at Principality, said: “This scheme allows us to offer mortgage products of up to 95 per cent LTV on brand new homes, unlocking the Welsh property market to more people than ever.
“It will be open to first-time buyers who are struggling to build a big deposit, offering another way to access properties, and these buyers are absolutely key to getting the housing market moving again.
“It will also enable builders to operate with confidence, knowing there is finance available for buyers interested in their homes, thus leading to more properties being built in Wales which is great news for the wider Welsh economy.”
