Help to Buy Scotland
The Help to Buy Scotland scheme helps homebuyers buying a new build home, and has recently been extended to help first-time buyers until 2021. After the homebuyer puts down 5% of the property's price, the Scottish government gives an equity loan of up to 15% to the buyer, who must them find a mortgage for 80% loan-to-value.
The scheme is actually split into two parts – the Help to Buy (Scotland) Affordable New Build scheme and Help to Buy (Scotland) Smaller Developers – the list of housebuilders taking part in each part of the scheme can be found below.
Help to Buy Scotland criteria
The scheme only applies to new build property from the participating housebuilders. The property must have a maximum value of £230,000 for purchases from 1 March 2016 to 31 March 2017, with this maximum threshold then reducing to £200,000 until the end of the scheme in 2021.
It isn't necessary to be a first-time buyer. However, the new house being purchased must be occupied by the homebuyer and be their sole property (ie not a buy-to-let property) The buyer must secure a repayment mortgage of 80% loan-to-value from a registered lender (see below).
How to apply
After finding a property you're interested in buying, contact an independent financial adviser or a participating lender to go over the details. Submit an application form to one of the administrating agents (see below). A financial assessment will make sure your costs will be no more than 45% of your net disposable income. The initial application can only be done within nine months of the estimated completion date of your new-build home. Once you have 'authority to proceed' you can then apply for a full mortgage. This Help to Buy government mortgage scheme is open to buyers from 1st March 2016. There is a fixed budget over the course of 2016/17. With it also being a demand-led scheme, it's best to apply sooner rather than later.
Housebuilders taking part in the Help to Buy (Scotland) Affordable New
Search for Help to Buy properties in Scotland