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Help onto and up the housing ladder

Up to 6,000 first-time buyers and others aspiring to purchase a new build home are set to receive a boost, Cabinet Secretary for Infrastructure and Capital Investment Alex Neil has revealed.

The Scottish Government will support a three year national mortgage indemnity scheme by providing a guarantee to facilitate its launch.

It will help households who could sensibly and sustainably afford a mortgage on a new build property, but are currently locked out due to high deposit requirements.

Homes for Scotland is projecting that over three years the new scheme could create or safeguard 22,800 new construction jobs and over 650 apprenticeships.

According to the Council of Mortgage Lenders, mortgage advances to first time buyers in Scotland fell by half from 35,300 in 2007 to 16,900 in 2011.

A recent Bank of Scotland report stated that in the past twelve months almost two thirds of homeowners, looking to sell their first home and move up the ladder, have been unable to do so as they face an increasing number of financial challenges.

The scheme has been developed by home-building industry body Homes for Scotland, in conjunction with insurance specialist Jardine Lloyd Thompson.

Further details on the scheme, including eligibility, participating house builders and lenders and a launch date, will emerge following more detailed discussions with Homes for Scotland and the Council of Mortgage Lenders.