First-time buyers will only need 5% deposit under new initiative
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Up to 6,000 housebuyers will benefit from the new Scottish Government scheme. Picture: Ian Rutherford
A NEW initiative backed by the Scottish Government, mortgage lenders and home builders could help thousands of first-time buyers on to the property ladder.
The MI New Home mortgage indemnity scheme will give people wishing to buy a new-build property the opportunity to borrow 95 per cent of the cost of the home.
It follows reports this week that the average age Scots expect to be able to afford their first home is now 40 – because of the difficulty of saving 25 per cent of the cost of a new home to put down as a deposit.
Deputy First Minister Nicola Sturgeon said: “Basically, it puts lenders into the position where they can give 90 to 95 per cent loans, which will reduce the amount needed for a deposit. For a lot of people, it is the barrier to them getting a mortgage.”
Ms Sturgeon visited a Barratt development in the west of Edinburgh to launch the scheme yesterday.
