First Home Fund
You may only need a 5% deposit to own a new home
The First Home Fund* is a new scheme run by the Scottish Government to help first-time buyers in Scotland purchase a property.
In order to take part in the scheme, you will be required to provide a minimum deposit of 5% of the purchase price (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price. You must also be a first-time buyer who, does not own, or has not previously owned, a property in Scotland or anywhere else in the world.
With the First Home Fund*, you will own the property outright but, the Scottish Government will contribute a maximum of 49% equity stake based on the property valuation or purchase price, whichever is lower, up to a maximum of £25,000. The remaining stake is made up through a deposit contribution and mortgage from a bank or building society. The Scottish Government equity stake is repayable when you sell your home.
The assistance is available on all properties, including new build properties in Scotland, for completions taking place from 18th December 2019 until 31st March 2021. Find out more here.
Here's some examples of how the First Home Fund scheme could work:
- Based on a £100,000 purchase price
- 5% Deposit £5,000
- 70% Mortgage £70,000
- 25% Scottish Government equity share £25,000
- Based on a £250,000 purchase price
- 5% Deposit £12,500
- 85% Mortgage £212,500
- 10% Scottish Government equity share £25,000
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT
*First Home Fund is subject to availability, status and eligibility. There is a limit of one application per property. You can submit a joint application however you will be limited to one award of £25,000. Your mortgage must be at least 25% of the purchase price. Your mortgage must be capital repayment. The property must be the sole residence of all applicants. The scheme is not available for buy-to-let properties. You cannot apply to other Scottish Government shared equity schemes (e.g. Help to Buy (Scotland) Affordable New Build, Help to Buy (Scotland) Smaller Developer, New Supply Shared Equity or Open Market Shared Equity) while also applying to this scheme. If you have an open application to any other shared equity scheme in Scotland you must withdraw this before you apply to this scheme. However you are able to use a Help to Buy: ISA or Lifetime ISA to put towards your deposit. The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or the purchase price (whichever is lower). If you purchase a property for less than the valuation figure then the maximum Scottish Government contribution is £25,000 or 49% of the purchase price.
†Move in date is subject to build programme and completion.
First Home Fund cannot be used in conjunction with any other offer.
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