The Team

Scottish Government “First Home Fund”
07/02/2020
Scottish Government “First Home Fund”

The Scottish Government has created a fund of £150 million to help first-time purchasers. The fund, known as the First Home Fund will provide up to £25,000 towards the cost of buying a property. This will be done through a shared equity scheme.

The scheme is open to all first-time buyers in Scotland. A first-time buyer is defined as anyone who does not own or has previously owned a property in Scotland or anywhere else in the world.

 

The important thing to realise with this scheme is that it can be used to buy either new or existing properties.
 

To access the fund, buyers need to have a deposit of about 5% of the purchase price of the property and there is no upper limit or cap on the property price.
 

In addition, buyers will need to take out a mortgage of at least 25% of the purchase price and the mortgage must be on a capital and interest repayment basis.
 

The assistance provided means that this new scheme is a shared equity scheme – both you and the Scottish Government will contribute to the purchase of the property.
 

Your contribution will be your deposit and your mortgage and the Scottish Government’s contribution will represent the balance.
 

You will only have to pay the Scottish Government back when you sell the property and there are no monthly repayments or interest on the money provided by the “First Home Fund”.
 

If you wish, you can pay off the Scottish Government’s share in the property, however, if it hasn’t been paid, when you come to sell, you will then have to pay the Scottish Government back. The repayment is based on the percentage of the Scottish Government's contribution. For instance, if your share in the property through your deposit and interest is 80% and the Scottish Government’s contribution is 20%, then on the sale of the property, you will receive 80% of the sale price and the Scottish Government will receive 20% of the sale price.
 

For further details of the Scottish Government’s “First Home Fund” please click here.
 

You should also be aware that this help and support cannot be used in conjunction with the other house purchase assistance schemes currently available. These are:
 

Help to Buy (Scotland) – Affordable New Build Scheme
 

This scheme provides up to 15% of the purchase price of a New Build home, subject to a maximum purchase price of £200,000. First-time buyers and existing property owners can apply. You can view the details by clicking here.
 

OMSE (Open Market Shared Equity) Scheme
 

This scheme is designed to help first-time buyers and those in priority access groups who cannot afford the full price of a home for sale on the open market. You can view details of the scheme here.
 

NSSE (New Supply Shared Equity) Scheme
 

If you want to buy a new build house from a Housing Association or local council but can’t afford the full price, you might be able to get help through this scheme. To find out if you qualify, please click here.