The Scottish equivalent of the English "new buy scheme" where a new build house or flat can be purchased with as little as a 5% deposit has now been launched. The MI New Home Scheme is a joint Government/Builder indemnity guarantee scheme for the new build market in Scotland

Through MI new home clients can purchase a new build house or flat with a deposit from 5% to 9.99%

This is welcome news for the Scottish property market and especially for the house builders as lenders usually require a 15% deposit for the purchase of a new build house

There are currently four lenders who are lending on the MI new home scheme with rates as low as 4.99% for a 2 year fixed rate. There are a number of builders taking part in the scheme so the national coverage spread should mean that buyers in most areas can benefit

95% lending is still available with one lender and a number of lenders lending at 90% too. This is the case now and is different to what the press would have you believe

The Scotland on Sunday reported recently that nothing less than a 25% deposit would secure first time buyers a mortgage. This is inaccurate and never been the case since the start of the credit crunch

Chris Norton, is an Independent Financial Adviser and can be contacted for further advice on this or any other mortgage matter via Blair Cadell - where he is also available every Tuesday from 1pm to 5pm at Blair Cadell's 1 Harrison Gardens, Edinburgh office


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