Shared Equity schemes – The First Home Fund relaunched on 1st April and 7 days later all the funding from the Scottish Government had been allocated and applications closed.
If you were hoping to use this scheme to help with the purchase of your first home then have you considered the other shared equity schemes available?
Help to Buy
The Help to Buy Smaller Developers New Build scheme Affordable New home scheme is for new build property being sold by registered home builders. This is available for both home movers and first time buyers but there is a maximum purchase price which is £200,000 with the maximum assistance available 15% of the purchase price.
A list of the smaller developers under this scheme is available at Help to Buy (Scotland) Smaller Developers New Build Scheme.
New Supply Shared Equity (Home Builder)
This is open to First Time Buyers but you can also be considered where you may have previously owned a home and have experienced a significant change to personal circumstances such as a martial breakdown. The scheme can also apply a maximum household income which if exceeded would mean that you would not qualify.
This scheme is available via some housing associations and house builders. This can be as part of the planning permission to build a set number of affordable homes.
The assistance available will range from 20% to 40% of the purchase price of the property. And you are required to contribute typically 5% deposit from your own funds.
You will own 100% of your new home but the Scottish Government will take a security over the property for the percentage of the assistance provided. A version of this scheme is also offered from some Housing Associations / builders with the shared equity loan being split between the Scottish Government and Housing Association / builder.
More information is available at https://www.mygov.scot/new-supply-shared-equity-scheme/overview/
LIFT Open Market Shared Equity Scheme (OMSE)
With this scheme there are restrictions on the maximum purchase price and size of property that can be purchased depending on where the property is located.
If accepted, you are then able to purchase a property that is being sold on the open market and are given a 3 month time period to secure a property which needs to be approved by the scheme prior to making a offer on it.
You must contribute towards the purchase with the maximum mortgage you can obtain plus any deposit you have available. You can get between 10% and 40% assistance from the Scottish Government in the form of an equity loan. If with the mortgage available and your own deposit you can raise more than 90% of the purchase price you will not be eligible for the scheme.
Whether a first time buyer or a looking to move home getting the correct financial advice is the key to making your plans a reality. To discuss the different shared equity schemes and get the mortgage advice you need get in touch with David on 01224 679330 or email firstname.lastname@example.org.
Your home may be repossessed if you do not keep up repayments on your mortgage.