With Scotland's political future settled, at least for the time being, new financial initiatives in place, and mortgage providers vying to offer ever cheaper deals, prospective and existing homeowners could reduce their costs significantly.

With Scotland’s political future settled, at least for the time being, new financial initiatives in place, and mortgage providers vying to offer ever cheaper deals, prospective and existing homeowners could reduce their costs significantly.

The four out of ten borrowers currently languishing on their lender's standard variable rate could gain the most, with potential savings running into the thousands. However, anyone looking to benefit will need to ensure their finances are in the best possible order.

Matthew Gray, Scottish executive for the National Association of Estate Agents, said: "Now the general election is behind us, having followed closely on the back of the referendum, there is a relative sigh of relief from many in Scotland who have lived through an unprecedented period of political intrigue and uncertainty."

The introduction of the Help-to-Buy Isa - where every £200 put aside, up to £3,000, will be supplemented by £50 from the Government - should make it easier for first-time buyers to save a deposit. For couples pooling their resources, it is equivalent to a gift of £1,500.

The replacement of Stamp Duty north of the Border last month by the Land and Building Transaction Tax makes purchases under £145,000 tax free and, because the previous threshold was £125,000, represents a saving of £400 for the majority of buyers.

First-time buyers can also benefit, as long as funds last, from the Government's Help-to-Buy shared equity scheme, which enables those who fit the lending criteria to buy new properties from participating builders at reduced cost.

Meanwhile, with the Bank of England's base rate at a record low of 0.5 per cent for more than six years, mortgage lenders are falling over themselves to attract new customers with their best-ever deals.

At the same time, however, they are being compelled to take greater care than before over who they lend to. More stringent affordability tests introduced in April last year, as part of the Financial Conduct Authority's Mortgage Market Review (MMR), mean only those in good financial shape can get a new loan.

To qualify, borrowers must prove they are not over-burdened with existing debt, that they spend responsibly and have sufficient income to support the new loan once their other commitments are taken into account.

Matt Sanders, from comparison site Gocompare.com, said: "MMR has undoubtedly prolonged the process of applying for a mortgage, but a mortgage is still one of your biggest outgoings. Therefore, it's good to know affordability is now at the heart of what they offer, which, at the end of the day, benefits the customer as well as providers.

"Even though applying for a mortgage is more complicated, there has never been a better time to shop around, and with record low interest rates, the hassle of going through the checks and balances might be worth it to save yourself some cash every month."

For those who meet the new criteria, there is no shortage of deals to choose from, with several of those for first-time buyers promising cashback on completion.

Nationwide is offering £500 back to first-timers. This is on top of any other cashback provided through its Save-to-Buy scheme, which returns up to £1,000, or its Flexclusive range open only to current account holders. The building society has also reduced interest rates on several mortgages.

Halifax has launched a 1 per cent first-time buyer cashback on purchases up to £250,000 across its mortgage range, including Help-to-Buy loans. And it, too, has cut several other rates.

First-time buyers considering a cashback loan need to be sure that the rate and fees are competitive enough to make it worth having, though.

For those looking to remortgage, Yorkshire Building Society (YBS) currently has some of the cheapest fixed-rate deals. These include a two-year fix at 1.54 per cent and a three-year option at 2.24 per cent, both with total fees of £475.

For first-timers, there is a two-year fix at 4.39 per cent with a £130 fee, which is available up to 95 per cent of property value.

The Co-operative Bank, Lloyds, HSBC and Clydesdale Bank, which has also launched a new £1,000 cashback offer, have reduced rates on selected deals too.

The Co-op Bank's latest two-year fix is the UK's lowest ever, according to financial comparison service Moneyfacts.co.uk. It is set at 1.09 per cent for mortgages up to 60 per cent of property value and comes with an arrangement fee of £1,499.

Someone paying the typical standard variable rate (SVR) of 4.9 per cent on a £100,000 25-year repayment loan would save around £135 a month - more than £3,200 - over the two-year term, even after paying the fee. Someone with a £150,000 loan would save over £230 a month, or around £5,600 in total.

Kevin Mountford, head of banking at MoneySupermarket.com, said: "Research and shopping around for the best deal is an essential first step when applying for any mortgage.

"But don't forget, you need to look beyond the rate of interest to the fee as well, as this can significantly impact the total cost of the mortgage over the term of the deal."

If there are early repayment charges in force on an existing loan, these will reduce the potential saving too, but for many people, it could still be worth moving.

Small variations in costs can make a surprising difference over several years. For example, Tesco Bank is offering a five-year fix at 2.59 per cent with a £195 fee, while YBS has a similar fix priced at 2.19 per cent but with total fees of £975.

Even with the higher fees, choosing the YBS loan would save someone with a £100,000 mortgage £420 over five years. The larger the loan, the greater the impact of paying an even slightly higher rate. With a £150,000 mortgage, the saving from going with YBS rather than Tesco would be around £1,020.