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).
NatWest and RBS are the first two lenders to
have signed up to the Scottish government’s MI New Home
RBS mortgages director, Moray McDonald,
“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
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.
According 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