First Home Fund
Finance secretary Kate Forbes has announced that an extra £50 million will be added to the First Home Fund, a shared equity scheme providing first time buyers with up to £25,000 to purchase a property. The Government says that this move will support an estimated 2,000 first time buyers and increase the total funding to £200 million.
The Government will also be investing £100 million in targeted employment support and training – with further details to be announced.
The First Home Fund is a Government initiative to help first-time home buyers purchase a property. Up to £25,000 is available to all first-time buyers towards the purchase of both new build and existing properties.
In order to qualify for the scheme, you will be required to provide a minimum deposit of 5% of the purchase price (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price. Although the 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.
You will normally repay the Scottish Government’s percentage equity share when you sell your home.
The scheme is open to first-time buyers who are taking out a mortgage. You cannot apply if you are a cash buyer or if you have previously owned a property in the UK or abroad at any time (as either a sole or a joint owner).
The maximum contribution from the 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, the maximum Scottish Government contribution is £25,000 or 49% of the purchase price.