Scottish Mortgage Market given a much needed boost
A £120 million pound funding package has been announced by the Scottish Government, which will help the Scottish new build housing market.
The scheme is aimed at both first time buyers and next time home movers who can't afford to get on the first or next rung of the housing ladder without using a shared equity scheme. Clients can buy a share of a new build property with the Scottish Government taking an equity stake in the property.
The construction industry also welcomed the announcement as this will create some growth in this still beleaguered sector. Growth in the house building industry is seen as essential in any economic recovery.
In fact any changes that motivate people to move house, should in turn create more demand, confidence in the market and eventually rising house prices again. This also stimulates the remortgage market and secondary lending markets.
With High Street Banks still being very restrictive with their lending, many clients are turning to alternative funding solutions - such as Secured Loans. Also known as Second Charge Mortgages, clients use these facilities for many reasons, particularly debt consolidation loans. This type of loan can often make substantial reduction of credit commitments while freeing up cash to hopefully come back into the Scottish economy. Clients do need to be aware however that they will likely pay more interest in the long run as debt consolidation loans are usually taken out over a longer period.