More join mortgage indemnity scheme

Published on 29/09/2012 02:38

THE MORTGAGE indemnity scheme backed by the Scottish Government has been joined by three new home builders. Under the scheme, launched by Nicola Sturgeon earlier this month, home-buyers will be able to obtain mortgages for up to 95 per cent of the value of a new home.

MI New Home has now been backed by Bellway Homes, Deveron Homes and Mansell Homes – bringing the number of home-builders taking part to 15.

The scheme has been designed to help overcome the difficulties caused by large deposit requirements which have locked many credit-worthy buyers out of the market.

Paul Smee, director-general of the Council of Mortgage Lenders, said: “It increases the options for households who may have been feeling constrained, and offers lenders additional assurance by offsetting some of the risk they would otherwise face.”