News article 21/01/2013

(Issued 21 January 2013) 

Scottish home buyers now have even more options open to them as MI New Home¹ mortgage products enabling them to borrow up to 95% are now available from Bank of Scotland.

The products are available from today (21st January 2013) through Bank of Scotland branches². The deals are designed for borrowers with a 5%-10% deposit who are purchasing new build properties (including flats) up to a value of £250,000 from home builders participating in the scheme.

Product details:
o 2 year fixed mortgage at 5.69%, £999 fee
o 2 year fixed mortgage at 6.09%, with no product fee
o 7 year fixed mortgage at 5.69%, with no product fee

The Scottish Government supported initiative aims to help those who would otherwise be locked out of the market meet their home ownership aspirations.

Laurence Mann, Head of Mortgages at Bank of Scotland, said, "We are proud to be supporting the MI New Home scheme, which is putting the purchase of a new-build home back within the grasp of both Scottish first time buyers and home movers, whilst also giving a much needed boost to housing supply."

Philip Hogg, Chief Executive of industry body Homes for Scotland which developed the scheme, said: “We are delighted Bank of Scotland is now fully active in MI New Home as this comes at a crucially important time in the New Year when many people will be thinking about moving home. Joining Nationwide and RBS, this means that customers have even more choice when it comes to their mortgage options.

“Whilst many may have previously been put off by high deposit requirements, there is now nothing to stop buying becoming a reality³ as the MI New Home scheme enables people to move with as little as a 5% deposit – whether they are first time buyers or looking to move up the property ladder.”

Housing Minister Margaret Burgess said, "Securing finance for a new home can be challenging for many people. That is why the Scottish Government is committed to doing all it can to help people step on and move up the housing ladder, where it is sensible and sustainable for them.

"The backing of Bank of Scotland, one of our leading lenders, for the MI New Home mortgage indemnity scheme is hugely significant. I am pleased the bank has recognised the importance of the scheme, which makes available 90 to 95 per cent mortgages for new build homes up to the value of £250,000.

"Facilitated by a Scottish Government guarantee that could support the sale of thousands of new build homes over three years, the scheme could play a significant role in creating or safeguarding vital construction jobs and apprenticeships."

"The scheme is now backed by three of Scotland’s major lenders and 22 homebuilders. I look forward to seeing it develop further and encourage more homebuilders and lenders to participate so as to maximise the opportunities that it provides for credit worthy borrowers currently squeezed out of the mortgage market."

22 home builders across Scotland are currently participating in MI New Home with more set to join shortly⁴.

Ends

Notes to Editors:

1. MI New Home has been developed by industry body Homes for Scotland with the support of the Scottish Government.

2. Also available through Halifax intermediaries.

3. Buyers wishing to take advantage of the MI New Home scheme will need to qualify for a mortgage with a participating lender in the usual way and be subject to the lender’s normal assessment criteria.

4. As at 21 January 2013, the following builders are participating in MI New Home:
Bancon Homes, Mansell Homes, Barratt Homes, Merchant Homes, Bellway Homes, Miller Homes, Chap Homes, Persimmon Homes, Charles Church, Springfield, David Wilson Homes, Stewart Milne Homes, Deveron Homes, Taylor Wimpey, Lovell, Mactaggart & Mickel, Ogilvie Homes, Tulloch Homes, Kier Homes, Scotia Homes, A&J Stephen, and Cruden Homes.

Bank of Scotland has today announced the launch of a new product range to support its participation in the MI New Home scheme.

More information, including qualification criteria, links to participating builders’ websites and advice on what interested buyers should do next, can be found at www.minewhome.co.uk