First Homes Fund opens for Scottish FTBs

Applications for the Scottish Government’s First Homes Fund are now open, providing first-time buyers (FTBs) with up to £10,000 towards a deposit.

The First Homes Fund is a shared-equity scheme open to any prospective new homeowners in Scotland. The fund can be used to purchase any home (whether new build or existing property) valued up to £300,000. It is part of the Scottish Government’s plans to support 50,000 households over the course of this Parliament. This first phase of the fund is set to help 2,000 FTBs get on the property ladder by September.

If you buy using the First Homes Fund, the Scottish Government will own a share of your property. However, you would still own the home and hold the title to it. To protect the Government’s share, you must have a mortgage covering at least 25% of the purchase price. The Government’s share is usually repaid when the property is sold.

You must have had an offer accepted on a home before applying for the First Homes Fund. However, it’s worth discussing your options beforehand. Contact us if you would like to find out more. We can answer your questions and help you decide whether the scheme is right for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Sources:

https://www.gov.scot/news/first-homes-fund-open-by-end-of-june/
https://www.mygov.scot/first-homes-fund/before-you-apply