The Scottish Government has agreed to support the development of a scheme to help first-time buyers and others aspiring to purchase a new home.
Home-building industry body Homes for Scotland has been awarded £250,000 to enable it to work with lenders and builders to take forward the proposals.
It is hoped to develop a mortgage indemnity scheme that results in higher loan to value mortgages being available to those who can afford them.
Scotland’s Housing Minister Keith Brown said: “We want to do all we can to create new home-owning opportunities for buyers who can afford mortgages, but are currently excluded due to high deposit requirements.
“Earlier this year, when we published our housing blueprint Homes Fit for the 21st Century, we promised to explore opportunities to develop mortgage indemnity schemes.
“Introducing such a scheme would inject new mortgage liquidity into the market, protect jobs and support increased supply.
“This would also create more activity in the building sector as builders are able to unlock land and fund increased volumes.”
The proposed scheme is similar to the FirstBuy plans being initiated in England to help people get on to the property ladder.
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