NatWest and RBS have signed up for the
Scottish government’s Mortgage Indemnity Scheme (MIS) – MI New Home
– aiming to assist customers in buying new-build homes with
deposits between 5% and 10%.
The MIS, launched on 12
September, is similar to the NewBuy scheme announced
earlier this year in England and Wales, and it covers participating
lenders’ losses on new-build properties mortgaged between 90% and
95% Loan-to-Value (LTV).
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NatWest and RBS are the first two lenders to
have signed up to the Scottish government’s MI New Home
initiative.
RBS mortgages director, Moray McDonald,
said:
“We are one of the few banks who have
maintained 90% LTV lending for second hand homes continuously since
the financial crisis. MIS allows us to extend 90%-95% loans to
new home buyers, backed by strong promotional rates and fee
free.”
Customers can apply for the MIS scheme if the
property purchase price is less than £250,000, it is to be the
customers’ main residence and the purchase is not linked to another
scheme such as shared ownership or shared equity.
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By GlobalDataAccording to RBS, buying a property using MIS
is likely to be more suitable for people who expect to stay in the
property for a number of years, rather than those who plan to move
soon.
