MI New Home
MI New Home is a new government-supported 95% mortgage scheme aimed specifically at homebuyers looking to buy new homes in Scotland.
This new initiative, which has been developed by Homes for Scotland with support from the Scottish Government, is positioned to help first-time buyers and home movers alike buy a new build home with as low as a 5% deposit.
Through MI New Home, participating high street lenders are able to offer up to 95% loan to value mortgages on new properties in Scotland with a purchase price of up to £250,000.
For more information on MI New Home please visit your nearest development and speak to a member of our sales team or contact us directly below.
Homebuyers looking for 95% mortgages on new homes in England may be interested to know that a parallel scheme is already in place. Please see our NewBuy scheme for further information.
MI New Home - Q&A
Q. What exactly is MI New Home?
With many lenders demanding large deposits before they will lend, MI New Home is aimed at helping homebuyers buy a new-build home with just a 5-10% deposit - buyers who would otherwise typically find it difficult to purchase a new home.
The scheme has been developed by Homes for Scotland with support from the Scottish Government, in conjunction with house builders like Bellway, banks and building societies.
Q. How can MI New Home help me buy a home with 5-10% deposit?
Under the scheme, Bellway partners with mortgage lenders who provide a 90-95% loan to value mortgage on new build properties up to the value of £250,000.
Under MI New Home, Bellway and the Scottish Government commit to cover some potential future losses, reducing the lender’s risk, and resulting in them being willing to lend on a 5-10% deposit.
Q. So is it some sort of Shared Equity Scheme?
No, it is neither Shared Equity nor Shared Ownership in any form. You own 100% of your property.
Q. Is the scheme just for first-time buyers?
No, many of those taking advantage of the scheme will certainly be first-time buyers, but MI New Home is also available to homeowners who only have the funds for a 5-10% deposit on their next home.
Q. Are there any special requirements?
MI New Home is for the purchase of your main home, so it can't be used for second homes or investment properties. You must be a UK citizen or have a permanent right to reside and you must not be receiving financial assistance with your deposit from a local authority or other public body.
Q. How much I can borrow?
The minimum is 90%, the maximum 95%, of the purchase price, but the actual amount depends on your personal circumstances. Lenders will want to know that you can meet your mortgage repayments using their usual assessment criteria - you are responsible for paying your mortgage under the MI New Home scheme in exactly the same way as any other mortgage.
Q. Could I get an Interest Only mortgage under MI New Home?
No, MI New Home is only available on Capital Repayment mortgages.
Q. Are there any fees involved?
Just as with most mortgages there will be an administration fee to the lender and a survey fee – these charges can differ from lender to lender, however there are no specific MI New Home fees.
Q. I’ve seen a Bellway development where I want to buy - what do I do next?
Here at Bellway Homes we have professional, approachable advisers who are always happy to help. Come and talk to us. They will take you through all the steps involved – from speaking to participating lenders, to reserving your new home.
TERMS & CONDITIONS
Available on properties with a purchase price of up to £250,000.
Only available on developments throughout Scotland.
Not available on second homes or investment properties.
Applicants must be UK citizens or have a permanent right to reside.
The minimum mortgage amount available is 90% of the purchase price up to a maximum of 95%.
5% deposit required to be paid upon exchange of contracts including any reservation fees already paid.
Available on capital repayment mortgages only.
Any promoted Bellway Homes offer is subject to contract, status, selected plots only and is subject to availability.
MI New Home is not available on part exchange transactions.
Prices and details correct at time of going to press.
Images are typical of Bellway Homes.