First Home Fund Scotland Relaunched: Up to £10,000 for First-Time Buyers

The Scottish government announced yesterday the relaunch of the First Home Fund aimed at helping more people take the first step onto the property ladder.

The shared equity scheme will allow first-time buyers to apply for a contribution of up to £10,000 towards the deposit on their first home. The scheme is likely to prove similarly popular with those looking to buy their first property in Scotland.

How did the previous version of the First Home Fund work?

In the original scheme, first time buyers were able to apply for up to £25,000, with the amount being capped at 49% of the property valuation or purchase price, whichever was lower. The scheme was able to be used for the purchase of both new-build and existing homes, and could be used in conjunction with a Help to Buy or Lifetime ISA.

There was no upper limit on the purchase price of the property, although the buyer did need to take out a capital and interest repayment mortgage.

There was an application fee of £550 for the scheme, with this money being refunded if the buyer’s application was unsuccessful.

What do we know so far about the new version of the scheme?

At this point, we know that the new scheme is due to open by the end of June. First-time buyers will be able to apply for a contribution of up to £10,000 towards their deposit, with a limit of £300,000 on the value of the property.

The scheme will be open to those purchasing either a new-build or existing property with a mortgage.

Commenting on the new scheme David Marshall, operations director with Warners Solicitors said: “One of the biggest challenges facing first-time buyers is saving the deposit needed to get onto the property ladder. In its last outing, demand for the scheme was exceptionally high and we would expect to see a similar influx of enquiries from first-time buyers when the scheme launches next month. We are still awaiting confirmation of full details of any eligibility criteria from the government, and ahead of that I would encourage anyone thinking of buying their first home to get in touch and our team will be delighted to help them.”

Further Information

To register for updates on the new First Home Fund scheme, get in touch with us at firsthomefund@warnersllp.com 

Our expert purchasing team will then keep you up to date with more information on the scheme as it becomes available, in addition to providing you with a free, no obligation purchasing quote and answering any questions that you may have about the buying process, or the property market in general.