The availability of 95% mortgages for Scottish buyers has been given a massive boost as a new round of housebuilders join the MI New Home initiative and more options for finance looking set to be available shortly. Like NewBuy in England, the scheme aims to help those with smaller deposits purchase a new home up to £250,000.
The recent addition of Mactaggart & Mickel, Scotia Homes, Kier Homes, Ogilvie Homes and Tulloch Homes takes the number of builders participating in the Scottish Government supported scheme to 20. Further increasing choice for buyers in terms of finance is anticipated shortly with an announcement regarding the participation of Bank of Scotland/Halifax. They will join RBS and Nationwide.
Covering the whole of Scotland, MI New Home offers a valuable solution for creditworthy customers previously locked out of the market by high deposit requirements averaging 25%. This scheme gives them a way in and a selection of options to choose from.
The latest round of developers joining the scheme comes on the back of new Halifax research showing that Scotland is home to the top eight most affordable areas for First Time Buyers.
Lanarkshire couple Lindsay Maxwell and Stephen Thomson were the first to take advantage of the scheme following its launch last autumn. Previously living with their parents, they have just enjoyed Christmas in their new home.
Lindsay says: "Having Christmas in our own home and being able to invite our family and friends round during the holidays was a dream come true. We thought it would take at least another year of saving for a deposit before we could move but the MI New Home scheme made a huge difference and just goes to prove that you shouldn't be put off - there are mortgage options out there."
First time buyers are also finding it easier to obtain a mortgage. The Council for Mortgage Lenders report that 5,100 loans were advanced to first-time buyers in Scotland in the third quarter of 2012. That is the highest figure for almost three years and 9% up on the same period in 2011.
At the same time, however, there was a slight fall in the number of loans to home movers. The CML figures show that, at 7,400, the number of loans in Scotland was down 3% compared to 2011. This contrasts with a 12% increase in the same period for the whole of the UK.