One of the major problems about buying a house for first-time buyers is the fact that they have to afford a large deposit. This is something that has made getting on the property ladder very difficult for people, especially those who have lower incomes.
A new plan has been announced which is going to see people have the option to purchase a house with a 95 percent mortgage, this will mean they only need to afford a five percent deposit, which is a very favourable figure. The 95 percent mortgage is going to be available for properties that have a value up to £250,000, and it is hoped that this will not only help people get on the housing market, but it will also help create jobs in the construction industry.
This is a plan that has been put together by the Scottish government, and they have been working very closely with the construction industry in order to work on a way to boost the job situation in construction. It is hoped that 650 apprenticeships are going to be created by the new financial deal, and nearly 23,000 current jobs are going to be safeguarded.
It is expected that the Royal Bank of Scotland and Nationwide are going to be part of the scheme and so are several housebuilders in Scotland. The Chief Executive of Homes for Scotland is Philip Hogg and he has commented, “For a prospective purchaser, a 95 percent mortgage is going to be very tempting, but it is also very important that we focus on what is happening behind-the-scenes. Builders need to be aware of how this all works and make sure that they are adequately insured.”