News article 24/02/2012

(Issued 24 February 2012) 
 

Responding to the latest figures published today by the Council of Mortgage Lenders (CML) showing respective drops of 10% and 4% in the number of loans to both home movers and first time buyers in Scotland in the last quarter, home building industry body Homes for Scotland highlighted the vital importance of its new mortgage indemnity scheme in helping to get the housing market moving again by driving 95% loan to value lending back into the mortgage mainstream.

Developed with the support of the Scottish Government and set to launch next month, the organisation’s Chief Executive Jonathan Fair said:

“With the average Scottish home mover borrowing 72% of their property’s value (the highest proportion seen since 2008) and first time buyers nearly 80%, today’s figures demonstrate the urgency of getting this scheme up and running, and reversing the drops in lending reported by CML.

“Helping to create new home owning opportunities for those who can demonstrably afford mortgages but are currently excluded from the housing market due to high deposit requirements will not only deliver much needed new housing investment but also create vital jobs and stimulate economic growth.”