First Homes Fund Scotland
The Scottish Government’s First Homes Fund is here and we’re ready to help you make the most of it. If you’re a first-time buyer in Scotland, this could be the boost you’ve been waiting for.
Scottish Government's First Homes Fund is open for new applications.
What is the First Homes Fund?
The Scottish Government’s First Homes Fund helps first-time buyers with up to £10,000 towards an existing or new-build home costing no more than £300,000.
Buyers receive an equity loan with no ongoing repayments, they own their property outright and the Scottish Government holds a percentage equity stake.
How does the First Homes Fund work?
Once you’ve had an offer accepted on a property – even just a verbal agreement – you can apply. To be eligible, the following conditions apply:
- The property purchase price must be no more than £300,000
- You must take out a capital repayment mortgage covering at least 25% of the purchase price
- Your mortgage and debt repayments must be no more than 45% of your net income
- The scheme is available to first-time buyers only – you must not currently own, or have previously owned, a property in Scotland, the UK, or elsewhere
- Cash buyers are not eligible
- The property must be your main home – it cannot be let out
For joint applications, only one person needs to be a first-time buyer, provided neither applicant owns a property at the point of completing the purchase
Let’s make it happen…
We can guide you through the process to help you make your dream of buying your own home a reality – here’s how…
First things first - you need to know if you can afford it
Our experienced advisers will chat to you about your current circumstances and calculate your affordability for a mortgage. They will help you understand what your budget could be for a property purchase and that your future mortgage payment is within your monthly budget.
You’ll need to have an offer accepted on a property
You need to have had an offer accepted on a property before you can apply for the First Homes Fund. This can be a verbal agreement – you do not need written confirmation of your offer being accepted. You cannot apply if you've 'concluded missives' and agreed a moving-in date for your home.
Gather your information
- details of your solicitor
- a mortgage decision in principle
- evidence that your mortgage payments will not be more than 45% of your net income
- a copy of the home report (for open market sales)
After you apply
If your application is successful, you'll get an award letter which is valid for 3 months. You'll need to agree your move-in date within this time or your letter will no longer be valid and you'll need to reapply for the First Homes Fund. You'll also have to pay a fee of £650. Your award letter will have details of how to pay this. A solicitor will help you through the process of buying your home. If your First Homes Fund application is successful, you'll need to pay for your share of the property's price. You'll also have to pay: legal costs to your solicitor registration fees
Your questions answered
At every stage of your home buying journey, you can benefit from our team's wealth of knowledge.
Let’s get started
Contact our team to get expert mortgage advice and begin your home buying journey!
