A pilot scheme to help first-time buyers to purchase their own home in Scotland has been launched today.
The First Home Fund is being offered by the Scottish Government, which will provide an equity loan of up to £25,000 or 49% of the property’s value – whichever is the lower amount – for the buyer’s deposit.
Meanwhile, the buyer will provide a minimum deposit of 5% towards the purchase price.
The Scottish Government said the new fund would provide a total of £150 million until March 2021 to help at least 6,000 people buy their first home.
Unlike other shared equity initiatives offered by the Scottish Government, the First Home Fund allows buyers to purchase both existing and new build properties.
However, just like Help to Buy Scotland there is no deadline set for repayment of the equity loan, which is also interest-free.
First-time buyers have the option to acquire all or some of the Scottish Government’s retained equity share at any time.
Among the lenders which have announced they will be accepting mortgage applications from those looking to participate in the scheme are Nationwide Building Society.
Henry Jordan, Nationwide’s director of mortgages, said: “We welcome any schemes designed to assist first-time buyers onto the housing ladder especially because, as a mutual, the Society was founded with the purpose of helping people into homes of their own.
“We are, therefore, pleased to be supporting the Scottish Government’s first-time buyer equity share scheme by accepting applications, which will give existing Nationwide members and new customers in Scotland access to the Society’s highly competitive mortgage deals.”
Scottish Building Society has also announced its participation in the scheme.
