First Homes Mortgage (Scotland)

The First Homes Fund is a shared equity scheme that can contribute up to £10,000 towards the purchase of your first home in Scotland. You will fund the remainder of the purchase through a repayment mortgage from Ecology.

Yes. To qualify for the scheme, you must take out a capital repayment mortgage covering at least 25% of the purchase price (or valuation, if lower). The scheme is not available to cash buyers.

If your property is valued at £200,000 or less, the First Homes Fund contribution can cover the full deposit requirement, so you won’t need to contribute any of your own funds. If the property is valued at more than £200,000, you’ll need to contribute some of your own money towards the deposit to keep the mortgage at or below 95% LTV.

You will need to speak to an independent financial adviser, who will assess whether the mortgage and the First Homes Fund are suitable for your circumstances and ensure the purchase is affordable. If appropriate, the adviser can then submit a mortgage application to Ecology on your behalf and support you throughout the process.

Yes. Although the Scottish Government will hold a percentage equity stake in the property, you will own the home outright and be responsible for all mortgage payments, maintenance, insurance, repairs and associated costs.

No. Unlike shared ownership schemes, there is no rent payable on the Scottish Government’s equity stake.

No. There are no monthly repayments or interest charges payable to the Scottish Government on its equity stake. You will only make your normal mortgage payments to Ecology.

When you sell your home, the Scottish Government is entitled to receive the same percentage share of the property’s value that it originally contributed. If the property’s value has increased, the value of the Government’s share will increase; if it has decreased, the value of the share will decrease accordingly.

Yes. You may have the option to buy out the Scottish Government’s equity stake before selling your home. Further details can be obtained from the scheme administrator.

You can apply once your offer on a property has been accepted (or you have reserved a new-build property). Your independent financial adviser can help you complete the application and submit a mortgage application to Ecology on your behalf.

If your application is approved, you will receive an Award Letter and must conclude missives within 3 months. If this deadline is not met, you will need to reapply for the scheme. Once approved, you will have up to 6 months to complete your property purchase, and a £650 application fee will be payable to the scheme’s administering agent. Further details can be found on the Scottish Government website. First Homes Fund – Homeowners

Full details of the scheme, including eligibility criteria, application requirements and scheme rules, can be found on the Scottish Government website. First Homes Fund – Homeowners