95% Mortgage Scheme Aims To Help first Time Buyers

STRUGGLING first-time buyers will get a foot on the property ladder under a new 95 per cent mortgage scheme. The Mortgage Indemnity New Home plan aims to help around 6000 people across Scotland who are currently priced out of the market. Construction watchdogs Homes for Scotland unveiled the scheme after house building dropped to its lowest level since 1948. Last year only 15,000 new homes were completed, the lowest level for over 60 years.

The biggest barrier preventing people getting into the housing market is finding the mortgage deposit that can be 20 to 25 per cent which in most cases equates to between £30,000 and £40,000.

The new mortgage product is likely to be unveiled in the next few weeks and will offer a 95 per cent mortgage to those who can sustainably afford it.