Government Help For First Time Home Buyers (Jan. 2020)
The First Home Fund
The First Home Fund is a £150 million shared equity scheme to provide first-time buyers with up to £25,000 to help them buy a property that meets their needs and is located in the area where they want to live.
It is open to all first-time buyers in Scotland and can be used to help buy both new build and existing properties.
The funding provided by the scheme will help up to 6,000 first-time buyers purchase their first home. This is in addition to the more than 32,000 households that have already used the existing Scottish Government shared equity schemes since 2007.
- Only First Time Buyers can qualify for this scheme and applicants can borrow up to £25,000.
- The First Home Fund loan cannot be for any more than 49% of the property value.
- For people buying together, they must either submit a joint application or one person applies alone. I.e. The award is only granted once for the property.
An applicant must:
– Live in the property as their main residence and must not let the property, take-in lodgers or share occupation with others.
– Take-out a mortgage for a minimum of 25% of the purchase price.
– Put down a deposit of at least 5% of the purchase price.
Buyers can still use a Help to Buy ISA (if opened before the scheme closed on 30 November 2019) or a Lifetime ISA to assist towards the purchase.
As you might expect, there are terms and conditions.
As a first-time property buyer, you will need legal/conveyancing assistance and contacting a solicitor is a great place to start.
You are welcome to contact us HERE