Tough test for young Scots wanting mortgage

YOUNG Scots will have to wait until they are nearly 30 and earning more than £10,000 over the average wage to get their foot on the property ladder, according to research.

Figures show that while average Scottish salaries have stayed static at around £23,000 a year in the past 10 years, the typical firsttime buyer’s earnings have risen from £28,685 to £33,873 over the same period.

Concerns about the plight of first-time buyers have also resurfaced as the data shows the average percentage loan advance the banks are giving has been cut from 89.25 per cent in 2007 to just 84.5 per cent.

The number of loans has remained the same with 35,400 in 2007 and the same last year although the value of mortgages has risen from £3.19 billion to £3.95bn.

Now Homes For Scotland, the umbrella body for builders has called on the Scottish Government to extend the Help to Buy scheme and increase the levels of first time buyers.

Nicola Sturgeon launched Help to Buy in 2013 in a bid to help people who were hampered by the lack of affordable mortgages and unable to pay the large deposits demanded by banks.

Karen Campbell of Homes for Scotland said “We hope the Scottish Government will listen to our call to extend the Help to Buy Scheme beyond 2018/19.

“Not only will this allow more people to benefit from this support, relieving pressure on other sectors, it will provide builders with the confidence and certainty they need to invest in delivering more of the homes our country needs.”