We are delighted to support the Scottish Government’s new First Home Fund Scheme.
The First Home Fund aims to help first time buyers get onto the property ladder. Up to £25,000 is available to all first time buyers towards the purchase of both new build and existing properties.
A first time buyer is anyone who does not own, or hasn’t previously owned, a property in Scotland or anywhere else in the world.
In order to take part in the scheme, you’ll be required to provide a minimum deposit of 5% of the house price (subject to individual lender requirements) and your mortgage must be at least 25% of the house price.
Although the Scottish Government will have an equity share in the property, you will own the property outright. There are no monthly payments to be made towards the Scottish Government and no interest will be charged.
The scheme is open to all first time buyers in Scotland who are taking out a mortgage. You won’t be able to apply for the scheme if you’re a cash buyer, or if you’ve previously owned a property in the UK or abroad at any time (as either a sole or a joint owner).
There are a just a few more requirements buyers should be aware of:
- The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or the purchase price (whichever is lower). If you purchase a property for less than the valuation figure, then the maximum Scottish Government contribution is £25,000 or 49% of the purchase price.
- There is no maximum property price – i.e. the fund can be used as a contribution to any value of property. This is subject to individual lender requirements
- There is a limit of one application per property. You can submit a joint application however you will be limited to one award of £25,000.
- Your mortgage must be at least 25% of the purchase price.
- Buyers will also have to fund a minimum of 5% of the value of their new house from their own funds as a deposit.
- Your mortgage must be capital repayment.
- The property must be the sole residence of all applicants. The scheme is not available for buy-to-let properties.
- You cannot apply to other Scottish Government shared equity schemes (e.g. Help to Buy (Scotland) Affordable New Build, Help to Buy (Scotland) Smaller Developer, New Supply Shared Equity or Open Market Shared Equity) while also applying to this scheme. If you have an open application to any other shared equity scheme in Scotland you must withdraw this before you apply to this scheme. However, you are able to use a Help to Buy ISA or Lifetime ISA as part of your deposit.
- An administrative fee of £550 is payable directly to the Scottish Government. However, this will be refunded if the application is unsuccessful.
This scheme will run until 31st March 2021 and is limited to Scottish Government budget of £150M.
Our friendly advisers are on hand to guide you through this process, so please don’t hesitate to get in touch for additional information:
T: 0800 652 6649