Help to Buy
If you want to buy that new build home but can’t afford the total cost then you might be able to get help through the Help to Buy scheme.
How it Works
You will be expected to purchase a minimum share of 85% of the total purchase price and the Scottish Government will hold the remaining equity share under the shared equity agreement. The title deeds for your new home will be 100% in your name(s) but the Scottish Government will have a standard security on your home to protect their equity share.
The maximum purchase price under the Help to Buy scheme is £200,000 for the financial years 2018-19. 2019-20 and 2020-21.
If you can from your own funds and the mortgage available afford to purchase without the Scottish Government equity share you would not be eligible for the scheme.
Once you have purchased your new home you can in the future increase the share you own by repaying the Scottish Government for their share. This can be done in stages of at least 5% and you can increase your share to 100%. If you do want to increase your share it will be based on the valuation of the property at that time and you will be responsible for the cost of a valuation, legal costs and the administration costs.
How to apply
Once you have found a new home you like from one of the participating builders you will need to speak with a financial adviser (Mortgage Broker) to review your current financial situation and carry out the mortgage affordability with lenders and review whether you would be eligible for the Help to Buy Scheme.
If so then a mortgage can be approved in principle and you can then reserve your new home and at this stage you will apply to the administering agent of the Help to buy scheme. Your financial adviser (Mortgage Broker) will assist you with this process.
If the administering agent approves your eligibility for the scheme you will be issued with an Authority to Proceed letter confirming the mortgage loan amount, deposit and Scottish Government equity share grant approved. You can then proceed with the purchase of your new home.
Our advisers can guide you through the application and eligibility requirements and provide the advice you need to get the mortgage needed for the purchase of your new home.