First insight into the First Home Fund scheme

A new scheme to help first time buyers in Scotland was launched in December 2019, called First Home Fund. The First Home Fund is a shared equity scheme designed to replace the previous Help to Buy.

We have asked Stephen Stoops from Conquer Mortgages to tell us more about his experience with the scheme and Stephen gave us some very useful information:

“I have just had my first experience of the new First Home Fund.

“The scheme is proving very popular and they are inundated with applications, so much that they are already a few weeks behind with processing applications.

“However, the process seems to be a lot smoother than the previous Help to Buy scheme. Also notable as a difference to the previous scheme, the First Home Fund is not means tested.

“I have discussed the process with Link Housing and most of the applications are being approved, which means that funds may run out quickly.

“All in all, the First Home Fund is a good scheme and many first time buyers are taking advantage.”

About Conquer Mortgages

Stephen Stoops from Conquer Mortgage Services is an Independent Mortgage Adviser who offer expert advice on all aspects of house purchase. Whether buying your first home, moving on, re mortgaging or buying to let CMS can help you choose the right products most suited to your individual needs.

Information on the First Home Fund

The First Home Fund is run by the Scottish Government and aims to help first-time home buyers purchase a property. Up to £25,000 is available to all first-time buyers towards the purchase of both new build and existing properties.

A first-time buyer is anyone who does not own, or has previously owned, a property in Scotland or anywhere else in the world.

In order to take part in the scheme, you will be required to provide a minimum deposit of around 5% (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price.

Although the Scottish Government will have an equity share in the property, you will own the property outright. There are no monthly payments to be made towards the Scottish Government and no interest will be charged.

Please note that lenders will have their own individual requirements when providing a mortgage. The lender or a mortgage advisor will be able to fully explain these requirements to you.

You will normally repay the Scottish Government’s percentage equity share when you sell your home, however, you can choose to pay this off earlier. Source and further information here. 

If you are a first time buyer in need of guidance and advice, check our current listings here or speak to our sales team on 0333 241 3333.

As one of West of Scotland’s longest established estate agents, we’ve helped families across the country buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.