Scotland's First Home Fund is Closed, What Other Schemes Can Help First Time Buyers?
12 July 2021
With the First Home Fund closing, just shortly after opening earlier in the year, many first time buyers have been left wondering how they will be able to purchase their first house.
Embarking on the journey of purchasing your first home can be extremely overwhelming, especially without the First Home Fund, however there are other schemes and services that are designed to help you get started!
95% Mortgage Guarantee Scheme
The 95% mortgage guarantee scheme is designed to support first time buyers. This scheme allows first time buyers to purchase a home with just a 5% deposit, allowing the property market to become more accessible for first time buyers.
A Lifetime ISA is a saving service where you can benefit from a 25% tax-free bonus from the Government. This is a perfect option for saving as the money can only be spent on a first home or retirement, meaning your funds for your first home are secure.
Low-Cost Initiative for First Time Buyers (LIFT)
LIST is an open market shared equity scheme that is available for properties on the open market. The LIFT Open Market Shared Equity scheme allows people on low to moderate incomes to buy properties that are for sale on the open market. Buyers are required to put towards a modest deposit for the property and in return own an equity stake of between 60% and 90% in the property.
The Scottish Government then pays the remaining balance under an agreement with you. When you come to sell the home, the Government receives the equivalent stake on the sale value. This scheme comes with restrictions on the purchase price which are linked to the number of bedrooms.