Help to Buy (Scotland)
The Help to Buy (Scotland) scheme helps to buy a new build home from a participating home builder without having to fund the full purchase price. The scheme is available, from participating home builders up to a maximum value of £250,000, from 22 October 2014.
Your mortgage lender is likely to ask that you contribute a deposit of around 5%, and your mortgage and deposit together must cover a minimum 80% of the total purchase price.
Your mortgage must be a repayment mortgage from a qualifying lender (an interest-only first mortgage cannot be used).
The Scottish Government will help buyers to purchase the property and will take an equity stake of up to 20% of the value of the property. The Scottish Government’s equity stake can be repaid at any time. There is a Scottish Government Leaflet explaining the details of the scheme.
More information, including the names of participating house builders, is available on the Scottish Government's website.
If the property you want to buy is not built by a participating house-builder, or if you would prefer not to have an equity loan, but are looking for the opportunity to buy with a 5% deposit, read about the Mortgage Indemnity New Home Scheme.