Scottish Government Invest a Further 62 million To Help First Time Buyers

The Housing Minister, Margaret Burgess has announced an additional £62 million injection into the fund which is made available under the Open Market Shared Equity Scheme bringing total funding to £90 million.  Access to funding will be made available over the next two years for those who meet the criteria.

Who Is eligible?

The  Scheme is currently open to all first time buyers in pre defined areas of Scotland and allows those on low to moderate incomes to buy homes that are for sale on the open market where it is affordable for them to do so. The scheme is currently open to all first time buyers.

If you are a tenant of a local authority or registered social landlord, you will not be able to buy your existing home from your landlord through the Open Market Shared Equity Scheme, but you may be able to buy a property that is for sale on the open market.

How It Works

Under the Scheme, the Scottish Government will keep a financial stake in the property so you do not have to fund all of it.  You will pay for the majority share in the property – normally between 60 and 90 per cent of the price – and the Scottish Government will hold the remaining share under a shared equity agreement which it will enter into with you.  Although you will own the property outright, the interests of the Scottish Government will be secured by a mortgage (or a ‘standard security’ as it is known in Scotland) on your property.
If you can afford a 75 per cent share of a property the Scottish Government contribution will make up the remaining 25 per cent. You will have a 75 per cent stake in its value, whatever changes there are to the property’s value over time.

The Housing Minister said ‘People who should rightly be able to afford a mortgage are still facing real challenges buying a home.  This overall investment of £90 million over two years demonstrates our commitment to do all we can to help credit worthy buyers to buy their first homes.  Over the past four years this scheme has helped over 2,700 people on low to moderate incomes buy a home”. 

How Do I find Out More?

There is much to learn about buying a home for the first time this is why we offer a free no obligation consultation; designed to give first time buyers an overview of the whole process.  Why not call a us  to arrange an free appointment now.