Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Ecology BS Launches Mortgage for Scotland’s First Homes Fund

Ecology Building Society has introduced a new mortgage product for first-time buyers, designed to support the Scottish government’s First Homes Fund. The lender is now the 11th official provider for the scheme, which offers first-time buyers up to £10,000 towards their first property purchase.

The new mortgage from Ecology Building Society will finance up to 95% loan to value (LTV) on both new-build and existing homes valued up to £300,000. The product features a variable interest rate of 5.69%, a free standard valuation, and an income multiple of 5.5.

The Scottish government has committed £500 million to the First Homes Fund, aiming to support more than 10,000 first-time home purchases across Scotland. Ecology Building Society’s participation expands the options available to first-time buyers seeking to benefit from the scheme.

For letting agents and inventory clerks, the introduction of this mortgage product may increase demand for rental property transitions as more tenants move towards homeownership. The scheme’s focus on both new-build and existing properties could also impact the types of properties entering or leaving the rental market.