NatWest & RBS back Scottish MIG
The initiative aims to help people buy a new-build home with a deposit between 5% and 10%.
The scheme is similar to NewBuy – announced in May this year in England and Wales.
It covers participating lenders’ losses on new-build properties mortgaged between 90 to 95% LTV.
The bank is offering a fee free 2-year fixed rate at 95% LTV and a fee free 5-year fixed 95% deal at 4.79%.
Moray McDonald, RBS mortgages director said: “We are delighted to support the Scottish government, and assist more people to get onto the property ladder with a smaller deposit and fee free.
“Being ready to go from the outset underscores our commitment.
“We want to 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. We are working with two builders; Persimmon and Taylor Wimpey, who we partnered with on NewBuy, but hope to work with others over time.”
“We are one of the few banks who have maintained 90% Loan-to-Value (LTV) lending for second hand homes continuously since the financial crisis.
“MIS allows us to extend 90%-95% loans to new home buyers, backed by strong promotional rates and fee free.”