What First Time Buyers need to know about the First Home Fund
The Scottish Government has launched the First Home Fund, a shared equity scheme for first-time buyers, which aims to make home ownership accessible to more people.
What is the First Home Fund?The new First Home Fund is a £150 million shared equity scheme, which could potentially grant first-time buyers in Scotland up to £25,000 towards the purchase of their property. It is open to all first-time buyers regardless of income or eligibility for other existing schemes, so long as they have never previously owned a property in Scotland or anywhere else in the world.
How does the First Home Fund work?In order to qualify for the First Home Fund, buyers must contribute a deposit of at least 5% of the purchase price.
The buyer will own the property outright and they will not need to make interest repayments, but the Scottish Government will maintain an equity stake – this means the buyer will repay the Scottish Government’s percentage equity share when they sell their home.
What might the scheme look like for me?· Property sale price: £100,000
· 5% buyer deposit: £5,000
· 15% Scottish Government equity share: £15,000
· Mortgage at 80% loan to value: £80,000
· Property sale price: £250,000
· 5% buyer deposit: £12,500
· 10% Scottish Government equity share: £25,000
· Mortgage at 85% loan to value: £212,500
We know that one of the most significant barriers to home ownership is saving for a deposit, so schemes like the First Home Fund make the first step on to the property ladder that little bit more accessible for people.
The scheme is available at all of Dundas Estates’ new build developments across Scotland. Get in touch with one of our sales advisors to learn more about whether the First Home Fund is right for you.