The Scottish Government has recently announced new help for first-time buyers. The “First Home Fund” can provide up to £25,000 to help buyers purchase their first home. If you’re a first-time buyer, this fund might be for you.
The new fund is available to anyone who doesn’t own or who hasn’t previously owned property in Scotland or anywhere else in the world.
The money can be used to buy either a new build house or an existing home.
To qualify, you need to have at least a 5% deposit. You’ll also need to take out a mortgage of at least 25% of the purchase price of the house. There’s also no upper limit on the price of the property you intend to buy.
How does the “First Home Fund” work?
The Scottish Government will take a stake in the property. This kind of scheme is known as a shared equity scheme. You’ll contribute to the ownership through your deposit and mortgage. The Scottish Government will fund the balance through the “First Home Fund”.
There are no monthly repayments and there’s no interest on the money. You can pay back the money to the Scottish Government at any time.
When you come to sell your home, the sale price is divided in the same proportions of ownership that you and the Scottish Government have.
So, if, between your mortgage and deposit, you own 80% of the property with the Scottish Government owning the remaining 20%, when you come to sell, the sale price is split 80/20 in your favour.
Is there other financial help available?
There are a number of other Help to Buy schemes available through the Scottish Government. It has created a page on its website you can access to view the different schemes that are available. You can view that page by clicking here.
If you’d like to know more about buying a house, please click here.
Whether you’re a first-time buyer or a seasoned owner, if you would like to discuss your purchase and funding options, please get in touch.
