New government scheme most significant since crash says Persimmon Homes regional Scottish chariman
12 September 2012
The regional Scottish chairman of Persimmon Homes says today’s launch of a new Government-backed mortgage initiative is the most significant boost the mortgage market has received since the economic crisis first hit the housing market in 2007.
John Cassie, said the new mortgage indemnity scheme – MI New Home - which was officially launched today by the Scottish Government, is the first in several years to offer people in Scotland the chance to buy a new home with only a five per cent deposit, mirroring the NewBuy scheme currently available in England.
“Today’s launch of MI New Home by the Scottish Government is hugely significant as it removes the obstacle of a large deposit which has been a key factor holding back the housing market in recent years,” said Mr Cassie.
“MI New Homes opens up a 95 per cent mortgage product to both first time buyers and those looking to move up the property ladder. Importantly, it has no salary cap and is available to purchasers of new homes up to the value of £250,000.
“Initial rates from the large high street lenders to support this product look very favourable, making MI New Homes an attractive mortgage option for buyers of new build homes.
“The initiative is a much-needed shot in the arm for the whole housing sector and – with research showing every new home built creates five jobs – the Government’s support for up to 6,000 MI New Homes mortgages will also give a welcome boost to Scottish growth and employment.”
Rates put forward by lenders include a 4.49 per cent fix rate repayment mortgage from RBS and a 5.49 per cent two-year fixed rate repayment mortgage from Nationwide.