Buy your first home
with the LIFT scheme
Discover everything you need to know about the Scottish Government’s LIFT scheme and how it may help you to get on the property ladder.
As of 19th July 2024, Scottish Government's Open Market Shared Equity Scheme is paused for new applications.
We know that buying a home and laying down roots is a hugely important milestone for so many people but the dream of buying a home can feel like an impossible goal if you’re on a lower income.
That’s where LIFT could help
What is the LIFT scheme?
Low-cost Initiative for First Time Buyers (LIFT) is a Scottish Government scheme that has helped over 13,000 people get onto the property ladder since 2005.
Those eligible could receive up to 40% funding for their property purchase making the exciting prospect of buying your own home much more accessible
How does the LIFT scheme work?
LIFT’s Open Market Shared Equity (OMSE) scheme allows qualifying buyers to purchase a property on the open market within price thresholds which vary by size of property and location. It operates as a shared equity scheme with Scottish Government. For eligible purchasers, they could fund between 10% and 40% of the purchase price or valuation of the property, whichever is the lower.
On the eventual sale of the property the equivalent percentage is returned to the Scottish Government – there are no regular monthly payments as repayment of their share. You are able to increase your equity share when your finances allow and if you wish to do so.
Who can benefit from the LIFT scheme?
The LIFT scheme is open for applications for the following target markets –
- First time buyers
- Individuals aged 60 and above with a housing need
- Social tenants
- People with a disability and housing need
- Members plus veterans of the armed forces and widows, widowers, and partners of service personnel who have tragically lost their lives within the past two years
Do you need a deposit to be eligible for the LIFT scheme?
Typically, a 5% deposit contribution is required however there are mortgage options available that may require less or no deposit depending on your circumstances. The deposit is combined with the mortgage and Scottish Government’s share to cover the price of the property.
Individuals can retain up to £5,000 of their savings. Anything beyond this amount would be considered by the Scottish Government as deposit contribution.
How much will the government contribute?
The Scottish Government’s contribution amount is based on the maximum mortgage you can reasonably afford plus the savings you have to contribute to the purchase. In response to your application, you’ll receive a ‘Passport’ which details the amount of your award.
Recent updates to the LIFT scheme
Previously, buyers under the LIFT scheme were limited in the size of property they could acquire, based on the size of their household. This no longer applies as long as the property price fits within the price threshold for that size of home. Price thresholds were increased across the whole of Scotland in 2022 and are reviewed annually.
Purchasers can now offer over the property valuation to secure a property as long as the price paid is within the price threshold and the purchaser can make up the difference with their own funds.
What are the benefits of the LIFT scheme?
The main advantages for aspiring homeowners –
- Making home ownership a reality for those who thought it was previously out of reach
- A lower mortgage required than a standard purchase making mortgage repayments more affordable-
- Monthly mortgage payments could be lower compared to rent
- The ability to ‘fix’ your mortgage repayments giving you longer term payment security
- Typically, a 5% deposit or in some cases no deposit required
- Repayment of the share on the eventual sale of the property
Let’s make it happen…
We’ve helped hundreds of buyers purchase using LIFT and 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. We’ll work with you to achieve a solution that works for you.
Gather your information
As part of your mortgage and LIFT application you’ll need to provide some documents.
- 3 months personal bank statements
- Savings statement
- The latest 3 months payslips (12 weeks if paid weekly) or the latest 2 years SA302’s / tax calculations and Tax Year Overviews if self – employed
- Recent award notices for any benefits you are in receipt of
- Proof of accommodation (tenancy agreement or a letter from you parent/guardian if living there)
You’ll need a mortgage agreement in principle
As part of the LIFT application process, you’ll need a mortgage agreement in principle. We will secure this on your behalf from a lender that is compatible with the scheme and is the most competitive in your circumstances. Our advisers will provide a recommendation on the most suitable mortgage and arrange it for you.
What next?
We can assist in completing the LIFT application form. Our advisers can talk through your passport letter and the ‘award’ received from the Scottish Government and explain what that means in practice for your property purchase and your numbers!
Time to get house hunting
The exciting part…. You’ve received your passport letter and are ready to look for your ideal home. Our advisers can help you with ensuring the property you locate is eligible under the scheme.
Your questions answered
At every stage of your home buying journey, our advisers are here to answer any questions you. We are here to make the process a little less daunting.
Let’s get started
Contact our team to get expert mortgage advice and begin your home buying journey!