First Home Fund

First Home Fund Image

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 5% of the purchase price (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.

The scheme is open to all first-time buyers in Scotland who are taking out a mortgage. You will not be able to apply to the scheme if you are a cash buyer or if you have previously owned a property in the UK or abroad at any time (as either a sole or a joint owner).

The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or the purchase price (whichever is lower). If you purchase a property for less than the valuation figure then the maximum Scottish Government contribution is £25,000 or 49% of the purchase price.

Example of different equity shares

John’s Purchase

Property valuation and purchase price £100,000

John’s deposit and mortgage £75,000

SG contribution £25,000

SG equity share 25%

Amy’s Purchase

Property valuation and purchase price £50,000

Amy’s deposit and mortgage £25,500

SG contribution £24,500

SG equity share 49%

In this example, John can receive the full £25,000 contribution as this would be a 25% equity share for the Scottish Government.

Amy is not awarded the full £25,000 because the Scottish Government equity share cannot exceed 49%. The maximum amount she can receive is £24,500.

The First Home Fund is subject to eligibility and terms and conditions.

If you’d like to find out more, please speak to one of our sales advisors, who will be happy to provide further information.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE