The Scottish Government has confirmed that its First Home Fund - introduced to help first time buyers purchase a home - will run for a further year until 31 March 2022.
This is great news for those looking to get on the property ladder, who – providing they act quickly while funds last – can continue to access up to a maximum of £25,000 in government funding towards the purchase of their first home.
First-time buyers are those who don’t own, or haven’t previously owned, a property in Scotland or anywhere else in the world. However, for those buying a home in joint names, only one party needs to be a first-time buyer for both parties to access the fund.
Regional Sales and Marketing Director Allison Sutherland says: “The First Home scheme supported many first-time buyers onto the property ladder last year, providing the much-needed funding for affordable monthly mortgage payments.”
“The extension to the scheme is great news, however with less funding available this time around I would encourage anyone wanting to secure their dream of a first home to act quickly as we expect the funds will run out sooner.”
To participate in the scheme, you must have a minimum deposit of 5% of the purchase price of the property (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price. If you’re a cash buyer, you cannot apply for the scheme.
Using this scheme means the Scottish Government will have an equity share in your property, however, you will own the property outright. There are no monthly repayments or interest to pay – instead the Scottish Government receives a share of the sale price, whenever you decide to move on.
Some requirements buyers should be aware of include:
This scheme has been extended to 31 March 2022 and is limited to Scottish Government budget of £60 million. Applications open on 1 April 2021 and will be allocated on a first come first served basis.
Anyone wishing to get on the property ladder with Places for People can reserve their dream home and we’ll hold it for you until the First Home Fund re-opens.