Scottish councils to offer 100% mortgages

Scotland’s biggest local authorities are to use millions of pounds of public money to offer mortgages to people who have been turned down by banks. Dundee city council will become the first council to offer the 100 per cent mortgages to those on low income with no savings or collateral, with Edinburgh and Glasgow expected to launch similar schemes later this year.  Critics called the plans ‘madness’ and have accused the authorities of misusing public funds by offering credit to people who may not be able to keep up repayments, raising fears that taxpayers will face a huge bill if borrowers default.