03 Jan 2020
A new scheme will help new buyers north of the border with the deposit for a home.
The Scottish Government says the First Home Fund will make the housing market fairer by providing £150million to help at least 6,000 people get their first home.
The scheme will give new buyers up to £25,000 towards the cost of buying a home.
The Scottish Government will take an equity share in the property, but there are no monthly payments to be made to the Scottish Government and no interest charged.
The homeowner will normally repay the Scottish Government when they sell the property, but can choose to pay the money off earlier.
First Minister Nicola Sturgeon said: “For many people, getting a deposit together is often an obstacle in buying their first home. Removing barriers and supporting people to buy the home they want is at the heart of this new fund. That is why we are acting to make the process fairer, to offer a helping hand to those buying a new home.”
The Scottish Government says existing home-ownership schemes have helped more than 32,000 households in Scotland buy their own property since 2007, particularly those aged under 35.
Louisa Harper, from Edinburgh, who bought a new flat through the Help to Buy scheme, said: “I purchased my property in 2018. The scheme enabled me to get on the property ladder a lot earlier as I only needed to save a 5% deposit. Before purchasing my flat, I was caught in a vicious cycle paying expensive rent that meant I had little income left over to save.
“Alongside this, the properties I rented often only offered short-term leases which meant my son and I moved around a lot. When I purchased my property, I had not long graduated from university so was still in the early stages of shaping my career.
“Without Help to Buy, I would not be where I am now and it has enabled me to become a home owner at the age of 24.”
Nicola Barclay, chief executive of industry body Homes for Scotland, said: “Home ownership remains the preferred choice of tenure for the majority of Scots. Though they can sustainably manage monthly mortgage payments, getting the deposit together remains a challenge for many. Initiatives such as the First Home Fund and Help to Buy are crucial - not only in helping people achieve their housing aspirations, but also in helping to relieve pressures on the social and private rented sectors.”
If you would like to speak to one of our mortgage advisers to learn more about the scheme, click here or call us on: 0333 00 66 333.