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First Home Fund

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The Scottish Government has introduced a new shared equity scheme aimed specifically at helping first-time buyers to take their first step onto the property ladder.

To qualify for this new shared equity scheme you must not have previously owned property either individually or jointly, and you will be required to have a minimum deposit of 5% of the purchase price (subject to individual lender requirements) on a mortgage that must be a least 25% of the purchase price.

If you are applying for a joint mortgage, please note that one person must be a first-time buyer.

Whilst the Scottish Government will have shared equity of your property, you will still own the property outright. Repayment of the equity share will only be paid back when you sell your home, you will not be asked for any monthly payments towards this and no interest charges will be made by the Scottish Government.

The Scottish Governments maximum contribution is £25,000 or 49% of the purchase price or valuation figure, whichever is lower.

Shared Equity explained

If you have never considered shared equity before and are not quite clear on what it means, here is an explanation.

Shared equity means that the cost of your properties purchase price is split with the Scottish Government. Your share will be through a mortgage and deposit, with the remaining share provided by the Scottish Government.

You will be required to pay this back on the sale of your property, but at any time you can increase your equity share.

Example

Your deposit and mortgage will cover 85% of the home’s value when purchased, the Scottish Government will hold 15% share on your property. When you sell your home you will receive 85% of the selling price and the other 15% will be paid to the Scottish Government.

How it works...

The example below is based on a house valued at £200,000.

Please note that if you are applying for a joint mortgage, one of the applicants must be a first-time buyer.

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Finance Example

The following is based on a typical 4 bedroom villa in Alloa

Finance Image

PURCHASE PRICE

£264,995

FIRST HOME FUND

£25,000

BUYER DEPOSIT

£13,250

MORTGAGE AMOUNT

£225,245.75

Finance Example based on 25yr Term on Capital and Interest Repayment

Mortgage Rates Examples:

Mortage Image 1
Mortage Image 2
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Mortage Image 3

First Home Fund is subject to availability, eligibility and status. The fund is limited to one application per property. If you apply for a joint application you will only be awarded for one up to the value of £25,000. Your mortgage must be a minimum of 25% of the purchase price and must be a capital repayment mortgage. This scheme is not available on buy to let properties nor can it be used in conjunction with any other shared equity schemes (i.e. Help to Buy (Scotland)).
The Scottish Governments maximum contribution is £25,000 or 49% of the purchase price or valuation figure, whichever is lower.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT

The example below is based on a house valued at £200,000

Please note that if you are applying for a joint mortgage, one of the applicants must be a first-time buyer.

Info Image

The following is based on a typical 4 bedroom villa in Alloa

Finance Image

PURCHASE PRICE

£264,995

FIRST HOME FUND

£25,000

BUYER DEPOSIT

£13,250

MORTGAGE AMOUNT

£225,245.75

Finance Example based on 25yr Term on Capital and Interest Repayment

Mortgage Image 1
Mortgage Image 2
Arrow Right
Mortgage Image 3

First Home Fund is subject to availability, eligibility and status. The fund is limited to one application per property. If you apply for a joint application you will only be awarded for one up to the value of £25,000. Your mortgage must be a minimum of 25% of the purchase price and must be a capital repayment mortgage. This scheme is not available on buy to let properties nor can it be used in conjunction with any other shared equity schemes (i.e. Help to Buy (Scotland)).
The Scottish Governments maximum contribution is £25,000 or 49% of the purchase price or valuation figure, whichever is lower.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT