A new scheme has been unveiled to help first time buyers get on to the property ladder.
Similar to other government schemes such as LIFT and Help to Buy, the Scottish government's First Home Fund will contribute towards the cost of buying a property through a shared equity scheme. This means that the purchase cost is split between both the buyer and the Scottish government, so the Government holds a share in the property and the buyer then usually repays the government's contribution when the property is sold.
First-time buyers will be able to apply for up to £25,000 to help them buy a property and will be beneficial to those who are struggling to get a deposit together for their own home. Buyers will need a minimum deposit of about 5% and the mortgage must be at least 25% of the purchase price.
The scheme is applicable for all first time buyers in Scotland, can be used to help to buy both new-build and older properties, and there are no limits on the property value, allowing for more and more people to purchase their first home.
The £150 million loan facility is said to help 6,000 people with a deposit to buy their first home and Scottish Building Society and Nationwide Building Society are among the first lenders to sign up to the new fund.
If you are looking to buy your first home, and have been struggling to get on the property ladder, then please get in touch with our property team who can guide you through the complexities involved in buying your house and make the process as stress-free as possible.