Small builders are able to join this scheme which helps people buying a new build home, where they cannot raise the necessary deposit to secure a mortgage.
Builders joining the scheme contribute to a fund that protects lenders against losses. At the end of seven years the monies left in the collective fund are returned to the builders in proportion to their contributions. Home builder requirements and application details can be found at www.hbf.co.uk/policy-activities/government-policy/newbuy/newbuy-for-home-builders/
In Scotland there is the MI New Home mortgage indemnity scheme. It will enable credit-worthy borrowers to access 90% to 95% mortgages from participating lenders, to buy new build homes in Scotland with a maximum sales price of £250,000.
If you are a home builder interested in joining the scheme, please contact Homes for Scotland’s Head of Policy & Operations Karen Campbell: firstname.lastname@example.org
Tel: 0131 455 8350