The Scottish Government has launched its new national pilot scheme, helping first-time buyers with the deposit for a new home. Launched to provide a total of £150 million until March 2021, the new funding will help at least 6,000 people buy their first home, whatever its price.
Here we explain how it works and what’s in it for you.
What is the First Home Fund?
First Home Fund is a new Scottish Government shared equity scheme that aims to help aspiring first-time buyers onto the property ladder by providing up to £25,000 as an equity loan towards the purchase of a new home in Scotland.
What is a Shared Equity Scheme?
Shared equity means the purchasing cost is split between yourself and, in this case, the Scottish Government's First Home Fund. Scottish Government will secure their equity share on the home you are purchasing but you will own the property outright.
What type of home can I buy?
The scheme can fund the purchase of either existing properties or new build properties, including any Stewart Milne home from across Scotland.
The maximum First Home Fund contribution towards a Stewart Milne home is £25,000.
Can anyone use the funding?
The fund can only assist ‘first time buyers’. Confirmation of the buyer’s status must be provided by your solicitor.
What if I’m buying with someone else?
If you are making a joint application to the First Home Fund, only one of you needs to be a first time buyer.
What do you need?
Buyers must contribute a deposit of 5% of the purchase price (subject to lender requirements) and have agreed a mortgage of at least 25% of the property value. You will also have to pay an administration fee of £550 on application after you have reserved your new home but this is refunded if your application is unsuccessful.
Can I use other ‘help to buy’ schemes?
First Home Fund cannot be used with another equity scheme such as Help to Buy (Scotland). You can however still use a Help to Buy ISA or Lifetime ISA.
When do I need to repay this?
When you sell the home although, if you choose, you can repay the loan in full at any time before then at current market value. Meantime, however, there are no monthly repayments to be made on Scottish Government’s share of the loan.
How much do I pay back when I sell the house?
Again, you pay back the equivalent percentage. For example, if the Scottish Government committed 20% of the purchase value, you pay back 20% of the resale price at current market value.
Can I use the home purchased as a buy to let?
The home cannot be used as a let property; it must be your main residence.
Which lenders are offering mortgages for the First Home Fund?
• Glasgow Credit Union
• Leeds Building Society
• Lloyds Banking Group
• Scottish Building Society
• Scotwest Credit Union
The First Home Fund offers a greater flexibility to first time buyers, allowing them to benefit from lower interest rates available on lower ‘loan to value’ mortgages, without a limit on the property value. However, we would still recommend speaking to a New Homes’ Mortgage Specialist as every mortgage lender will have their own requirements.
Downstairs the superb open-plan kitchen/dining room has three access points; the hall, living room and garden. Glazed double doors from the living room lead to the dining room and garden beyond through a set of French doors. The kitchen incorporates a host of integrated appliances, including dishwasher, microwave and fridge/freezer, and a raised breakfast bar, so you can socialise and cook at the same time.
A laundry zone, conveniently located next to the rear door, is plumbed and wired to accommodate all your laundry equipment for optimum functionality, yet set behind attractive bi-fold doors to complement your choice of kitchen units. A WC/cloakroom is handily placed for easy access to the living room, kitchen, dining and garden.
A double bedroom with fitted wardrobe and en-suite shower room – with large walk-in shower, fitted mirror and vanity furniture – is located on the ground floor,
Upstairs two very spacious double bedrooms share the well-appointed family bathroom off the upstairs landing.
Images shown are for illustrative purposes only and are not to be presumed to be entirely accurate, individual properties may differ. Please contact a Sales Consultant for further details of this beautiful home.
Get In Touch
To find out more about this property in Castle Gardens Neighbourhood, please fill in this form
Stamp Duty Calculator
Shows the cost of stamp duty/LBTT/LTT for a home.
This calculator is designed to give you an indication of your LBTT / Stamp Duty liability when buying a Stewart Milne home. Calculations are rounded down to the nearest pound. LBTT / Stamp Duty is a self-assessed tax and therefore Stewart Milne Homes does not accept liability for the use by taxpayers or agents of this calculator. Please consult your mortgage adviser for your calculation.
Shows the cost per month and the total cost over the life of the mortgage, including fees & interest.
Actual loan amounts and affordability criteria will differ across lenders. Your home may be repossessed if you do not keep up repayments on a mortgage.
Request A Brochure
Thank you for showing an interest in the Castle Gardens Neighbourhood. Leave your details below and we'll send you a brochure in the post.
Thank you for showing an interest in the Castle Gardens Neighbourhood. Please fill in the form below and a member of team will get call you.