Scotland's First Home Fund for first time buyers

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The Scottish government are bringing our a new scheme called ‘First Home Fund’, aiming to help first time buyers purchase a property. The scheme gives buyers up to £25,000 towards the purchase of both new build and existing properties.  

The following are key features of the scheme:

  • The scheme is open to first time buyers, who are those who have not previously held title to a property. Where joint applicants apply, only one must be a first time buyer, but financial assistant will be awarded per property purchase. 
  • Beyond the requirement that a buyer is a first time buyer, there is no means testing, no price cap on properties nor further targeting of the scheme.
  • The scheme will support the purchase of new builds and existing homes.
  • An offer will have been accepted on a property before an application to the scheme may be made.
  • Buyers will be required to take out a mortgage, and there will be a minimum mortgage requirement of 25% of the property value, as is the case for Help to Buy. 
  • Buyers will also have to fund a minimum of 5% of the value of their new house from their own funds as a deposit.
  • The Scottish Government contribution will be secured on the equity of the home; is repayable in full at any time and must be repaid if the home is sold. No monthly payments will apply.
  • The new scheme is to run in conjunction with the current shared equity schemes, but applicants will not be able to benefit from another Scottish Government shared equity scheme to support the same purchase.
  • You may be able to combine contributions from the UK Government's Help to Buy ISA of the Lifetime ISA (which do not have to be paid to the UKG) with support from this scheme, as is the case for existing shared equity schemes.
  • All buyers must reside in the house as their main residence. There is a corresponding prohibition on letting, lodgers, sharing occupation etc. 
  • Scottish Ministers equity stake will be no more than 49%.
  • All applicants will be charged an administration fee of £550.00 upon approval to the scheme. This will be refunded if the application is unsuccessful. 

For further information on the scheme, please click on the links below or visit the Scottish Government website. 

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