More join mortgage indemnity scheme

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.”