First Home Fund

Scottish Building Society participates in the First Home Fund scheme, designed to help first-time home buyers purchase a property in Scotland.

What is 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 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.

You will normally repay the Scottish Government’s percentage equity share when you sell your home.

What is Shared Equity?

Buying through a shared equity scheme means you split the cost of purchasing the property with the Scottish Government. You will fund your share through a deposit and a mortgage, with the remaining share being provided by the Scottish Government.

There are no monthly payments or interest payments to the Scottish Government for their contribution. Instead, you will normally pay it back when you sell your property, or you can choose to increase your equity share over time.

As an example, if your deposit and mortgage pays for 85% of your home’s value when you buy, the Scottish Government will hold a 15% share. This means that when you sell, you will receive 85% of the final sale price and the Scottish Government will receive 15%.

This does not mean that the Scottish Government has an ownership right to the property. You will own the property outright and hold the full title.

Who is it for?

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).

While the scheme is open to all first-time buyers there are a few requirements that you will need to be aware of:

  • 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.

How much can I borrow?

We will consider loans supported by the First Home Fund up to £500,000, subject to affordability.

Other Assisted House Purchase Schemes

We also participate in the Scottish Government Low-cost Initiative for First-Time Buyers (LIFT) schemes - New Supply Shared Equity Scheme (NSSE), Open Market Shared Equity Scheme (OMSE).

How do I apply?

Before making an application to the scheme talk to us to find out how much you could borrow.

Find out more

More information is available on the Scottish Government website: https://www.gov.scot/policies/homeowners/first-home-fund/

Further Information

If you would like any further information on the First Home Fund please contact the Administering Agent:

Link Housing

Watling House

Callendar Business Park

Falkirk

FK1 1XR

Telephone: 0330 303 0125

Email: firsthomefund@linkhaltd.co.uk

New Saver Enquiries

0345 600 0585

New Mortgage Enquiries

0345 600 4085

Existing Member Enquiries

To talk to us about an existing savings or mortgage account, contact your local office

Find your local office

Lines open 9-5 Mon to Fri (10-5 Wed). Calls may be recorded and/or monitored.