We'll be accepting mortgage applications from those looking to participate in the Scottish Government’s first-time buyer equity share scheme, the First Home Fund, which launches today.
The new scheme will help first-time buyers in Scotland buy their own home, with the Scottish Government offering an equity loan of up to £25,000 (or 49 per cent of the property’s value, whichever is the lower amount). The buyer will provide a minimum deposit of five per cent of the purchase price.
Unlike other Scottish Government shared equity schemes, the First Home Fund allows buyers to purchase both existing and new build properties. And, as with Help to Buy (Scotland), there is no deadline set for repayment of the equity loan on First Home Fund, which will also be interest free. The first-time buyer has the option of acquiring all or some of the Scottish Government’s retained equity share at any time.
The First Home Fund runs alongside, although cannot be combined with existing schemes such as Help to Buy (Scotland) and Open Marked Shared Equity. The scheme will run with £150 million of funding or until March 2021, whichever comes first.
Henry Jordan, Nationwide’s Director of Mortgages, said:
“We welcome any schemes designed to assist first time buyers onto the housing ladder especially because, as a mutual, the Society was founded with the purpose of helping people into homes of their own.”
“We are, therefore, pleased to be supporting the Scottish Government’s first-time buyer equity share scheme by accepting applications, which will give existing Nationwide members and new customers in Scotland access to the Society’s highly competitive mortgage deals.”
Customers wishing to enter the scheme will have access to our Shared Equity product range, which includes two-year and five-year fixed rate options as well as a two-year tracker product all at a range of LTVs.