Help to buy
If you want to buy a new build home but can't afford the total cost, you might be able to get help through the Help to Buy (Scotland) Affordable New Build scheme.
The scheme is open to first time buyers and existing homeowners, and helps you with up to 15% of the purchase price of a new build home.
Further details can be found in the Scottish Government's help to buy leaflet below:
Help to Buy (Scotland) Affordable New Build - Information for buyers - October 2017
What is the Scottish Equity Loan scheme?
The Help to Buy (Scotland) Small Developers scheme was launched by the First Minister on 12 January 2015. The scheme helps buyers to buy a new build home from over 200 registered builders. Full details of the scheme can be viewed on the Scottish Government website.
The Scottish Government will help buyers to purchase the property by taking an equity stake up to a maximum of 15% of the value of the property.
Here is a quick summary of the important bits for the Scottish scheme:
- Available in Scotland for affiliated new builds up to a maximum purchase price of £200,000.
- Available to both first-time buyers and existing home owners.
- Buyers need a minimum deposit of 5%.
- You must occupy the property and it must be your only property.
- Most new builds are eligible, but you may need to check with the property developer.
- Your mortgage from one of the participating lenders must be a repayment mortgage, of at least 25%, and cannot be an interest-only first mortgage
The Scottish Government's equity stake can be repaid at any time and is based on the value of the property at the time of the repayment.
How does it work?
The scheme is designed to help fulfil the property ambitions of buyers who cannot raise large deposits. Buy-to-let investors are excluded - and you cannot part-exchange your current property. But, if you are eligible, the Scottish Government will help buyers to purchase the property by taking an equity stake of no more than 15% of the value of a new build property worth anything up to a maximum purchase price of £200,000.