House-hunters in Scotland welcome 95% mortgage scheme

Date:

Friday 24th August 2012

Alex Neil, MSP, has introduced the MI New Home scheme

Plans to introduce 95% mortgages in Scotland will be eagerly welcomed by many house-hunters hoping to buy a new-build home north of the border. The MI New Home indemnity guarantee scheme is a joint initiative between Homes for Scotland and the Scottish Government and is expected to become available in mid-September. As the proposal aims to increase the number of homes being built, these mortgages will only be available on new-build properties.

It is anticipated that the scheme will help around 6,000 people purchase a new home in Scotland in the three years following its introduction. Alex Neil, Cabinet Secretary for Infrastructure and Capital Investment, says: "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 allows lenders to offer buyers up to 95% of the value of a new home. In turn, this means purchasers only need a 5% deposit, making new homes much more affordable for many people, particularly first-time buyers. Homes valued up to £250,000 will be eligible for the initiative. MI New Home is due to be launched on Wednesday 12th September.

In the meantime, a number of housebuilders already offer buyers the chance to purchase a new home without having to save for a hefty deposit. For example, Bett Homes has a ‘CanBuy' scheme available, whereby a mortgage lender will provide 85% of the purchase price and an unsecured loan can be arranged for the remaining 15%. Stewart Milne Homes is running a similar offer for a limited time.

Both housebuilders have independent financial advisors on hand for prospective buyers to consult. ‘Parent Payback' is a scheme offered by Persimmon Homes, which is popular with first-time buyers. The buyer's parents put up the deposit for the new home and, in doing so, earn 5% interest per annum for two years making it a win-win situation. Parents earn a decent rate of interest on their investment while their offspring is able to move into a new home sooner than perhaps expected.

New Homes in Scotland

David Wilson @ Fairmilehead
David Wilson @ Fairmilehead, Buckstone Terrace, Edinburgh, City of Edinburgh, EH10 6XH
NOW AVAILABLE from £365,995
David Wilson Homes @ Fairmilehead is perfectly located on the southern outskirts of Edinburgh and offers a great selection of two bedroom apartments...
Montgomerie Brook
Montgomerie Brook, Long Drive, Irvine, North Ayrshire, KA11 2GB
NOW AVAILABLE from £203,495
A charming development in the popular Ayrshire town of Irvine which offers a stylish mix of three, four and five bedroom detached homes. Every house...
Earl's View
Earl's View, Woodilee Village, Off Woodilee Road, Glasgow, G66 3UA
NOW AVAILABLE from £442,000
DIRECTIONS Luxury 4 & 5 bedroom family homes prices from £435,000. Look forward to a new year in your new CALA home. Part...
Gilsland Grange
Gilsland Grange, North Berwick, East Lothian, EH39 5JA
NOW AVAILABLE from £565,000
Situated in the picturesque East Lothian coastal town of North Berwick, Gilsland Grange’s spacious four and five bedroom family homes offer...
Millbank
Millbank, Just off Leny Road, Deanston, Stirlingshire, FK16 6AP
NOW AVAILABLE from £299,995
Final homes now released.  Ask about Help to Buy (Scotland) at Millbank. Located in the heart of the Stirlingshire countryside near Doune, ...
Church Hill Brae
Church Hill Brae, Millgate, Winchburgh, Broxburn, EH52 6SN
NOW AVAILABLE from £124,995
Whether you are searching for your dream family home or making your first step on the property ladder, Church Hill Brae offers a stunning collection...
Ochilview
Ochilview, Main Road, Maddiston, Falkirk, FK2 0LU
NOW AVAILABLE from £99,995
At Ochilview, we have a fantastic selection of three, four and five bedroom semi-detached and detached family homes. Set in a semi-rural location on...
Parklands
Parklands, Coltswood Road, Coatbridge, North Lanarkshire, ML5 2AB
NOW AVAILABLE from £132,495
Welcome to Parklands - introducing our new 'Caledonia' range of homes to Coatbridge. This new neighbourhood will include three bedroom terrace, semi...
The Beeches
The Beeches, Queensferry Road, Kirkliston, Edinburgh City, EH29 9AQ
NOW AVAILABLE from £259,995
At The Beeches in Kirkliston, Barratt Homes brings you the best of both worlds. With a great selection of homestyles in a great location you'll find...
Cala At Fairmilehead - West Cairn Apartments
Cala At Fairmilehead, Edinburgh, City of Edinburgh, EH10 6QJ
£ POA
With the rolling Pentland Hills providing a stunning backdrop, these fantastic apartments embody style and flexibility. Our range of one, two and...
Richmond Gate
Richmond Gate, Fauldhouse Way, Oatlands, Glasgow, G5 0JB
NOW AVAILABLE from £97,000
When you visit any of our developments before the 27th of September you could win an all-inclusive holiday worth £2,000!** Richmond Gate is...
Prestonfields
Prestonfields, Prestongrange Road, Prestonpans, East Lothian, EH32 9GP
NOW AVAILABLE from £119,995
On the beautiful East Lothian coast, Prestonfields is a superb collection of homes with open countryside and sandy beaches on the doorstep, good...