First Home Fund Opens for Applications in Scotland

Key points

• The First Home Fund opened for applications on 24 June 2026
• The scheme is open to first-time buyers, offering them up to £10,000 towards their deposit
• In return, the Scottish Government takes an equity share in your new property
• The scheme can be used to buy both new-build or existing homes.

First Home Fund Opens for Applications in Scotland

The First-Home Fund (FHF), aimed at helping first-time buyers in Scotland to take their first step onto the property ladder, is now open for applications. The scheme offers first-time buyers up to £10,000 towards their deposit, in return for which the Scottish Government holds a percentage stake in the property.

Can Warners Help Me to Buy a Property using FHF?

Yes, absolutely. You can get in touch with us today on 0131 662 4747 or by email to property@warnersllp.com and one of our expert purchasing team will be delighted to help.

Who is eligible to apply for the scheme?

The scheme is open to first-time buyers only, meaning you must not have owned a home anywhere in the world, either on your own or jointly with someone else. If there are joint applicants (e.g. if you are buying with your partner) only one of you needs to be a first-time buyer, provided you do not own a property at the point of completing a purchase through this scheme. 

To be eligible, you must be buying the property as your main and only home.

The scheme is not open to cash buyers. You must be taking out a capital repayment mortgage of at least 25% of the buying price (or valuation, whichever is the lower).

When should I apply for the scheme?

You can apply for the scheme at the point that you have an offer accepted or, in the case of a new-build home, at the point at which you reserve the property.

How do I apply?

To apply, you will need to have:

• A mortgage agreement in principle
• Details of the solicitor acting for you
• For open market sales of existing properties, a copy of the Home Report. For off-market sales, a Scheme 1 valuation is required.
• For new build properties the valuation is either part of the mortgage offer, or a separate valuation report will need to be provided to the lender. You will also need a copy of the Reservation Agreement

Your mortgage broker or Independent Financial Adviser (IFA) should be able to assist with your application, or you can apply online.

Can I apply to use the scheme to buy a new build property?

Yes, the First Home Fund is available for both new-build properties and existing homes.

Can I use a Help to Buy ISA or Lifetime ISA towards the deposit while using the scheme?

Yes.

Are there any fees associated with the First Home Fund?

There is buyer’s fee of £650 that is payable once you have been approved for the scheme. If the sale does not conclude, this fee is refundable.

What lenders are taking part in the scheme?

Your broker will be able to advise you on this, or you can check the Scottish Government’s website for latest information.

How is the Scottish Government’s % share calculated?

The government’s share is calculated as a percentage of the purchase price or the valuation, whichever is lower. If, for example, a property is valued at £105,000 and you agree a purchase price of £100,000 with the government providing £10,000 via the FHF, their share would be 10%.

What happens when I come to sell the property?

When you come to sell a property that was purchased using the FHF, you should first contact the administering agent (e.g. Link Housing) used to buy the property  to advise them of this. Thereafter, you can market your home as normal on the open market. If you receive an offer equal to less than 95% of the property’s value, you must obtain permission from Scottish Ministers before you accept the offer.

The amount that you need to repay to the Government will depend on their % share in the property and the selling price you achieve. For example:

Valuation and Purchase Price: £100,000

Scottish Government contribution: £10,000 (10%)

Buyer sells in future on open market: £120,000 

Scottish Government receives: £12,000 (10%) 

If you’re thinking of buying a property in Scotland, get in touch with Warners today on 0131 662 4747, or by email at property@warnersllp.com