Help to Buy (Scotland) Scheme
Buying a new build house in Scotland is now a whole lot easier with the government’s Help to Buy (Scotland) Affordable New Build Scheme.
It is similar to the regular Help to Buy scheme, but offers homebuyers in Scotland the chance to apply for an equity loan of 15% from the Scottish Government. The scheme will be available from 1st March 2016 and is designed to help first time buyers, as well as existing homeowners, to buy a new build home from a participating home builder.
Buying your dream house in Scotland could become a reality sooner than you think with the Help to Buy (Scotland) Scheme.
What is the Help to Buy (Scotland) Scheme?
The Help to Buy (Scotland) Scheme aims to help both first time buyers and existing homeowners to purchase an affordable new build home from a reliable home builder who has been approved to participate in the scheme. If you are eligible, the Scottish Government will partially fund the cost of buying a new build house with a loan of up to 15% of the property value.
Your mortgage lender will usually require a minimum 5% deposit, with your total mortgage and deposit amounting to at least 85% of the total cost of the new house. Your mortgage must be from a qualifying lender and has to be a repayment mortgage, as you are not eligible for the Help to Buy (Scotland) scheme with an interest-only first mortgage.
The scheme will run for three years and the maximum purchase price will work on a sliding scale from year to year, as follows:
- For financial year 2016/17, purchases completed on or before 31st March 2017 have a threshold price of £230,000
- For financial year 2017/18, purchases completed on or before 31st March 2018 have a threshold price of £200,000
- For financial year 2018/19, purchases completed on or before 31st March 2019 have a threshold price of £175,000
Who is eligible for the Help to Buy (Scotland) Scheme?
The Help to Buy (Scotland) scheme is available to:
- First time buyers and existing homeowners
- Those looking to buy a new build home in Scotland
- Those who don’t own or part-own another property
How do you apply for the Help to Buy (Scotland) Scheme?
1. Submit an application form to the Help to Buy (Scotland) Scheme no earlier than nine months before your proposed move-in date, which will be provided by your home builder.
2. Ensure your current financial position is approved by your independent financial advisor before proceeding.
3. Upon completion of the application form, you should submit it to the agent administering the scheme, who will then contact you within five working days to inform you if your application is eligible.
4. Upon completion of the application form, you should submit it to the agent administering the scheme.
5. The agent will contact you within five working days to inform you if your application is eligible.
6. If you meet the scheme’s requirements, you’ll be given an “Authority to Proceed”, which allows your financial advisor to submit a mortgage application on your behalf. This permit your solicitor to advise you on your legal rights, obligations and forms you must sign.
7. If your application is successful, your mortgage lender and the Scottish Government will make their funds available to your solicitor, who will settle the purchase price with the home builder on your behalf.
8. You can then move into and enjoy your brand new home!Help To Buy Scotland Calculator For more information and for full terms and conditions
download the Help to Buy (Scotland) Scheme Leaflet.