First Home Fund
The First Home Fund is a new scheme run by the Scottish Government to help first-time buyers in Scotland purchase a property.To be eligible for the scheme you must be a first time buyer who has not previously owned or current own a property.
You will be required to provide a minimum deposit of 5% of the purchase and your mortgage must be at least 25% of the purchase price. The Scottish Government will contribute a maximum of 49% equity stake based on the property valuation or purchase price, whichever is lower, up to a maximum of £25,000. The remaining stake is made up through a deposit contribution and mortgage from a bank or building society.
There is no price cap on this Scheme so you can look at homes costing over £200,000. The Scottish Government equity stake is repayable when you sell your home. With the First Home Fund, you will own the property outright and will be responsible for mortgage repayments, maintenance etc.
Here’s an example of how the First Home Fund scheme could work based on a £250,000 purchase price:-
- 5% Purchaser Deposit £12,500
- 85% Purchaser Mortgage £212,500
- 10% Scottish Government equity share £25,000
Have a look at the Government Website for more information - https://www.gov.scot/policies/homeowners/first-home-fund/
Help To Buy
The Help To Buy Scheme (Scotland) is run by the Scottish Government to help first-time buyers and existing home owners move up in the property ladder.
This Scheme is only available on New Build Homes with a purchase price up to £200,000.
With Help to Buy (Scotland) you only need a 5% deposit to buy a new home. You can get an equity loan from the Scottish Government up to 15% of the value of the property, which means you only need to get an 80% mortgage. Remember this scheme is only available on homes up to the value of £200,000.
This Scottish Government Equity Loan has no monthly re-payments but instead is repayable when you sell your home. The will take back the 15% stake in your property meaning the will take 15% of the Sale Price weather the property Value has Increased or Decreased.
Here’s an example of how the Help To Buy scheme could work based on a property with a £200,000 purchase price:-
- 5% Purchaser Deposit £10,000
- 80% Purchaser Mortgage £160,000
- 15% Scottish Government equity share £30,000
Here is a link to their website for more information:
Here is another useful link with some more information:
Claymore Homes are an approved builder for a 95% Mortgage!
A 95% mortgage allows you to borrow up to 95% of the purchase price of the property. Meaning you only need a 5% deposit. The scheme is available to both first-time buyers and existing homeowners. Why not get in touch to find out more? we will point you in the direction of an financial adviser that can help.
Get in touch with our Sales Team for more information on email@example.com or give us a call on 01779 821115