£25,000 towards buying your first home – The First Home Fund is Back!
After unprecedented interest last year, The Scottish Government have announced that they will again be supporting First Time Buyer’s in Scotland, by offering them £25,000 towards the purchase of their first home.
This opens the door for lots of First Time Buyer’s, who would otherwise need to save a minimum of 10% deposit for their new home. This scheme means that you could own your own home with as little as 5% deposit.
There are no monthly repayments to the Scottish Government for their contribution and no interest will be charged – instead, you can choose to increase your equity stake over time, or you can repay their share when you sell your home.
All first time buyers in Scotland are eligible for the scheme, and there are no restrictions based on earnings.
Key things to note about the fund:
New applications open from 1st April 2021
You can borrow up to £25,000 through this scheme
You must still provide a 5% deposit from your own resources (i.e. savings, gift etc)
Most lenders cap the property value at £250,000 if you wish to use this scheme as part of your deposit
The amount borrowed is converted to a percentage of your purchase price and the same percentage of your sale price (not amount) is repaid when you sell your home
There’s no interest charged and no monthly repayments
This is available to you whether you buy a new or existing property
There is an application fee of £550 paid to the Government when accepted on the scheme
You cannot apply for this fund until you have reserved a plot or had an offer accepted on a home
You must complete your sale within 3 months of being approved on this scheme
For full information on the scheme you can check out all the details at https://www.gov.scot/policies/homeowners/first-home-fund/
Your property may be repossessed if you do not keep up repayments on your mortgage.