First-time buyers will only need 5% deposit under new initiative
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.