The new mortgage indemnity scheme is vital to reversing the continuing fall in house building activity, according to Homes for Scotland.

With latest Scottish Government figures showing a 20% annual fall in the total number of new homes started in Scotland, Jonathan Fair, Chief Executive of the industry body said: "There is one main obstacle to private sector recovery and that is constraints on mortgage lending, particularly in relation to the high deposits buyers now have to find.


"Today’s statistics clearly highlight the importance of quickly implementing our MI New Home mortgage indemnity scheme which will help drive 95% loan to value mortgages back into the lending mainstream for those who can sensibly and sustainably afford them.

"Over a three year period, it is envisaged that the scheme will assist some 6,000 First Time Buyers and others who aspire to purchase a new build home but are currently locked out of the market as a result of high deposit requirements. MI New Home will help alleviate pressures in other housing sectors as well as creating or safeguarding 23,000 construction jobs and over 650 apprenticeships."

Homes for Scotland is looking to launch the scheme as soon as possible with details currently being finalized.

(GK)