MI New Home passes 500 sales
The scheme, which averages £10m in new home sales every month, was launched last autumn to help creditworthy buyers purchase a new build home up to £250,000 with a five to 10% deposit.
Homes for Scotland chief executive Philip Hogg said: “Home ownership is the long-term tenure of choice for 78% of Scots but with buyers previously having to find an average 25% deposit such high requirements have been preventing many making their desired move.
“By increasing the range of options open to those who can sustainably afford monthly mortgage payments at what are very competitive rates but have limited deposit funding, MI New Home helps to ease this problem.”
MI New Homes is backed by the Bank of Scotland which offers a 2-year fixed rate at 4.69%, Nationwide with a 4.44% 2 and 3-year fix and RBS which has 2-year fixed rate at 4.49%.
And the number of participating builders has doubled since its launch to 25 companies.
Deputy First Minister Nicola Sturgeon said: “We want to help people get onto and move up the housing ladder where it is sensible and sustainable for them.
“The MI New Home scheme, facilitated by a Scottish government guarantee, is doing just that.”
Derek Pollard, an IFA for Mortgageforce Scotland, described the scheme as a “very important addition” to the Scottish housing market.
He said: “It enables those with a real appetite to buy to do so sooner rather than later with monthly mortgage payments that are both competitive and sustainable for them.
“In fact with only a £7,500 deposit required on a £150,000 home purchase MI New Home mortgage rates are some of the most keenly priced in the whole market.”