First Homes Fund Mortgage

Our First Homes Fund Mortgage is designed to help first-time buyers in Scotland take their first step onto the property ladder through the Scottish First Homes Fund.

Available for both new-build and existing homes worth up to £300,000, the mortgage can help make buying your first home more accessible. As a building society specialising in sustainable mortgages, we’ll work with your chosen independent financial adviser to guide them through the mortgage process.

Find out how the First Homes Fund works, whether you could be eligible and explore our mortgage options for first-time buyers in Scotland.

Enquire Now Mortgage Calculator Our Current Product Range

Your home may be repossessed if you do not keep up repayments on your mortgage.

How does a First Homes Fund Mortgage work?

5.69% Variable interest rate (subject to a 3% minimum)
5.8% APRC Overall cost for comparison
£299 Application fee
95% Maximum loan-to-value
  • The Scottish Government could contribute up to £10,000 towards the purchase
  • You will own 100% of the property, but the government will hold a financial stake (equity share).
  • There’s no fixed deadline to repay the equity loan.
  • You won’t pay any interest on the government’s contribution while you’re in the scheme.
  • The government’s contribution is a percentage stake, which you repay based on the property’s value when you sell or choose to pay it back.
  • Borrow up to £285,000, subject to eligibility and a full assessment.
Enquire Now How Much Could I Borrow? Representative Example and More Info

Representative Example and Eligibilty

This is an illustration of a typical mortgage and its total cost. It looks at a mortgage of £250,000, paid over 35 years on a discounted variable rate of 5.69%. This mortgage would need 420 monthly payments of £1,373.81 to repay the total balance. The total amount paid would be £577,630.84. This includes the loan amount (£250,000), interest (£327,630.84) and an application fee (£299). This illustration assumes the cost of the property is £500,000.

The overall cost for comparison is 5.8% APRC representative.

APRC (Overall Percentage Rate of Change) shows you, as a percentage, the annual cost of a secured loan or mortgage. It brings together all charges (such as fees and other costs), calculated as if you kept your secured loan or mortgage for the full term without changing it.

Eligibility

  • We’ll lend based on a full affordability assessment and at a maximum Loan to Value of 95%.
  • Applicants must be aged 18 years or over and at least one applicant must be a first-time buyer. The mortgage is only available to permanent Scottish residents.
  • A maximum mortgage term of 35 years is available (subject to eligibility).
  • Mortgages are available on a repayment basis only.
  • If the property was built in the last 10 years, the property must have an acceptable build warranty (subject to eligibility).
  • The mortgage is available for non-standard construction types (for example, timber frame or clad) providing the property complies with the Society’s requirements.
  • This product is available to all property located in Scotland.

Fees and charges

  • An early repayment charge is payable for the first 2 years of the product. Should you overpay more than 10% per annum or choose to redeem the mortgage 2% will apply in year 1 and 1% in year 2.
  • A minimum interest rate of 3% applies to the product. This means the interest rate for this product will never fall below 3%.
  • £299 application fee is payable with this product.
  • There is a £650 application fee payable to the scheme’s administering agent. This fee is separate from any fees payable to Ecology and is not charged, collected or administered by Ecology.
  • Read our full list of fees and charges for more information
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Why choose Ecology for your First Homes Fund Mortgage?

Why choose Ecology for your First Homes Fund Mortgage?

  • Higher borrowing potential with up to 5.5x your income
  • No additional deposit required from your own funds on properties valued up to £200,000
  • Free standard property valuation

Mortgage Calculator

Work out how much you could borrow and compare monthly payments.

  1. Tell us what you need

  2. Your Details

    Income

    Outgoings

  3. Summary

    Based on the information you’ve given us, we estimate that:

    You would like to borrow:

    Based on how much you would like to borrow, your initial payments would be:

    Once your project is completed, the C-Change discount comes into effect and your monthly repayments would be: *

    Based on the details you have provided, the maximum you could borrow is:

    * Calculated on the assumption that an average project is completed after 12-months.

    What's next

    If you'd like to find out more about our mortgages and the C-Change discount you could be eligible for, send us your details using the enquiry button below and we’ll be in touch to discuss your options further.

    Enquire now

    NB: All figures provided are for illustrative purposes only. This is not a formal quotation or a commitment to lend. Before agreeing a loan, our lending requirements must be met, including a credit check and full application.

First Homes Fund Mortgage FAQs

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