Scottish Building Society are helping first-time buyers by scrapping deposits on new-build mortgages.
Under the Scottish government’s First Home Fund, prospective homeowners trying to get on the property ladder need to find a minimum of 5%.
However, the society has agreed to accept the 5% from house builders, removing the need for buyers to find the cash for a deposit.
Paul Denton, CEO at the Scottish Building Society, said: “As we seek to rebuild the economy post-COVID-19, it is important that as many people as possible have access to affordable housing.
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“We were proud to be one of the first lenders to take applications for the Scottish government’s First Home Fund. Getting a deposit together is the main barrier for customers trying to get on the property ladder; in some cases, one that has been exacerbated by the impact of lockdown on personal finances.
“Removing the requirement for buyers to find that 5% is good news for buyers and good news for a housing industry that is vital for Scotland’s future economic prosperity.
“This is a small but life-changing step and we would welcome further Government initiatives, such as a freeze in land tax, to accelerate the recovery.”
The First Home Fund was launched by First Minister Nicola Sturgeon to make the housing market fairer by providing a total of £150m until March 2021, helping at least 6,000 people buy their first home.
All first-time buyers in Scotland can apply for an interest-free loan of up to £25,000 towards the cost of a home, if at least 25% of the property cost is covered by a mortgage.
By Ryan Fowler
Source: Mortgage Introducer