A new mortgage indemnity scheme which which aims to drive 95% loan to value mortgages back into the lending mainstream and help get the housing market moving again has launched. It will help households who could sensibly and sustainably afford a mortgage on a new build property, but are currently locked out due to high deposit requirements.
Supported by the Scottish Government, MI New Home has been developed by Homes for Scotland, working with the Council of Mortgage Lenders and insurance specialists Jardine Lloyd Thompson, it is hoped the scheme will help up to 6,000 first time buyers and others looking to purchase a new build home, over the next three years.
Further details on the are available in our s1homes buying guide
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Cabinet Secretary Alex Neil, who formerly had responsibility for housing, said:
“We know that many people who want to buy a new build home are unable to do so because of high deposit requirements. We want to help these people get onto and move up the housing ladder, where it is sensible and sustainable for them.The scheme will inject new life into the housing market, with the aim of helping thousands of households to be able to buy a new build home that they can afford.
“I also want to send a clear signal to Scotland’s housing sector that this Government will do all it can to provide the kind of solid foundations and certainty our construction industry demands. It is one of many innovative schemes that we will support to deliver growth, support jobs and keep our economy moving. I would urge lenders and house builders to embrace the mortgage indemnity scheme to make it a success.”
Homes for Scotland Chief Executive, Philip Hogg, said:
“Constraints surrounding mortgage lending have proved the single biggest obstacle to recovery in the housing market.
“It has therefore taken us a huge amount of effort and innovation to get to this point so we are absolutely delighted to be leading a scheme which we believe has the potential to make such a difference to so many fundamental areas.
“Our projections show that over the next three years the new scheme could create or safeguard 22,800 new construction jobs and 650 apprenticeships.
“Whether you choose to look at the delivery of much needed new housing investment, creating jobs, stimulating the wider economy or increasing the quality of Scotland’s housing stock, the social, economic and environmental benefits of implementing MI New Home are significant.”