The government backed programme launched last September and has doubled in size since that time. A & J Stephen, Cruden Homes, Muir Homes, Bett Homes and Discovery Homes Scotland are the latest firms to join the scheme, taking the total number of participants to 25.

Last week the Scottish government announced it would invest £120m in shared equity properties in response to the first phase of the Help to Buy scheme, which is available in England only. However, houses in Scotland will be eligible to use the mortgage guarantee aspect of the scheme when it launches across the UK in January 2014.

It is not currently known how the new schemes will affect the MI New Home proposition with the government currently in discussions with the industry over its new housing programme.

Philip Hogg, chief executive of trade body Homes for Scotland, told Mortgage Solutions that MI New Home remained vital to the Scottish housing market.

“With no equivalent Help to Buy shared equity currently available in Scotland and detail on the UK-wide guarantee scheme yet to emerge, MI New Home is firmly established as a key tool to help buyers in Scotland with smaller deposits get onto and move up the housing ladder,” he said.

Sponsored

EPC planning: act now or risk the rush later

Sponsored by BM Solutions

“Indeed, it continues to go from strength to strength, both in terms of the number of participating builders and sales.

“By enabling people to buy a new build home with as little as a 5% deposit and also incorporating part exchange through Bank of Scotland and Nationwide, MI New Home continues to play a significant role in helping to remove pressures elsewhere in the housing system, keep the market moving and get our industry building again.”