Differences Between the First Home Fund
The First Home Fund closed applications in October last year, but the government has confirmed that applications will re-open early this year. It runs alongside Help to Buy (Scotland). Eligibility for both is subject to lender terms and conditions, but what are the similarities and differences between the two schemes? Here we break it down so you can decide which scheme is right for your circumstances:
Who can apply?
Help to Buy: Open to all first time buyers (including those who have owned a property before) and existing home owners
First Home Fund: Open only to first time buyers who have never previously owned a property.
What contribution do I need to make?
Help to Buy: The government will contribute up to 15% of the purchase price.
First Home Fund: The government will contribute up to £25,000 or 49% share of the purchase price.
What is the minimum deposit required?
Help to Buy: A minimum of 5% deposit is required.
First Home Fund: A minimum of 5% deposit is required.
What type of property can I purchase using the scheme?
Help to Buy: It applies only to new build properties that are built by registered builders.
First Home Fund: This scheme applies to all new build and existing properties.
What is the maximum property price?
Help to Buy: What are the Key Differences Between the First Home Fund and Help to Buy?There is a maximum property price of £200,000
First Home Fund: The maximum house price is unlimited but is subject to lender terms and conditions.
What is the minimum mortgage amount that I will need?
Help to Buy: The mortgage will need to be at least 25% of the purchase price.
First Home Fund: The mortgage will need to be at least 25% of the purchase price.
What is the equity interest?
Help to Buy: There is no interest paid on the additional equity.
First Home Fund: There is no interest paid on the additional equity.
Is there a restriction on the type of mortgage?
Help to Buy: The scheme cannot be used with a buy-to-let mortgage and can only be used for a residential mortgage.
First Home Fund: The scheme cannot be used with a buy-to-let mortgage and can only be used for a residential mortgage.
What is the deadline?
Help to Buy: This scheme ends on 31st March 2021.
First Home Fund: This scheme ends on the 31st March 2021 and is limited to a budget of 150 million pounds.
If you are looking to purchase a first or even second home, you could use one of these schemes. Talk to us at Urban Union about the properties we currently have available in Edinburgh and Glasgow. Your dream of owning a property could become a reality! See more.