Ecology Building Society has launched a mortgage for first-time buyers using the Scottish government’s First Homes Fund.
The mutual has become the 11th official lender to join the scheme, which offers eligible buyers up to £10,000 towards the purchase of their first home.
Ecology’s First Homes Mortgage can provide loans of up to 95% loan-to-value on new-build and existing properties worth up to £300,000.
The variable-rate mortgage is priced at 5.69%, or 5.8% APRC, and includes a free standard valuation. Applicants may borrow up to 5.5 times their income, subject to eligibility and lending criteria.
Gareth Griffiths, chief executive officer at Ecology, said: “For many aspiring homeowners, the dream of buying a first home can feel increasingly out of reach. Rising house prices and the challenge of saving for a deposit mean too many people are locked out of home ownership.
“The Scottish Government’s First Homes Fund is helping to change that, and we’re delighted to launch a mortgage designed specifically to work alongside it. By combining government support with higher loan-to-value lending, we’re making it easier for first-time buyers to turn ambition into reality.
“This is also a powerful example of the importance of where you place your money. Savings deposits with Ecology are used to support people, communities and projects that deliver positive change.
“Helping more people secure a place to call home is exactly the kind of difference our Members want their money to make.”
The Scottish government has committed £500m to the First Homes Fund and expects the programme to support more than 10,000 first-home purchases across Scotland.
The Ecology mortgage is available to permanent Scottish residents aged 18 or over buying a property in Scotland. At least one applicant must be a first-time buyer.
Full product terms and conditions apply, including early repayment charges. Ecology mortgages are subject to eligibility and lending criteria. Further product information is available from Ecology.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Ecology already lends to buyers and borrowers purchasing or remortgaging Discounted Market Sale homes in England and Wales.
Griffiths said: “Through our work with Discounted Market Sale homes, co-housing, self-builds, conversions and now the First Homes Fund in Scotland, we are building a broader range of options for people who need a lender willing to look at their circumstances and the kind of home theywant to create.
“That wider commitment is central to Ecology’s purpose. We want our mortgages to support people whose route into a home may not fit the conventional mould, while continuing to support better homes, stronger communities and a more sustainable future.”
