Help to Buy in Scotland

Help to Buy Scotland
The Help to Buy scheme is designed to help first-time buyers to purchase affordable new build homes in Scotland. Find out how the scheme can benefit you with WhatHouse?

Help to Buy (Scotland) Affordable New Build Scheme was launched in March 2016 (alongside the Help to Buy Scotland Smaller Developers scheme, which is run in exactly the same way). 

An additional £100 million will be provided in to Help to Buy (Scotland) from 2019 to 2021, meaning that approximately 18,000 new properties will be purchased through this scheme.

The government offers a five-year interest-free equity loan of 15% to those looking to use Help to Buy in Scotland, on properties with the value of £200,000 and lower. With this, you would only have to provide a deposit of 5% of the property value. With 20% covered, you would have to find a repayments mortgage for the remaining 80% of the cost. In order to make sure the new home is affordable to the buyer, strict means testing will take place to show that the mortgage required will equate to no more than 4.5 times your income if you're single or 3.5 times your combined income if you're a couple.

Once the five-year interest free period has ended, an interest fee of 1.75% will be added to your monthly repayments of the loan.

The Help to Buy (Scotland) loan lasts 25 years maximum and once you sell your property, you must provide the government with 15% of the current property value. If the property value has increased, it is important that this is taken in to account.

The home that you purchase through Help to Buy (Scotland) must be the only property that you own and this must be your personal place of residence. Any property purchased through Help to Buy (Scotland) must not be rented out. Only government approved housebuilders and lenders can part-take in the scheme. Some available Help to Buy (Scotland) lenders in Scotland are:

Glasgow Credit Union
Leeds Building Society
Virgin Money
Lloyds Banking Group
Leeds Building Society

Working example

Property price £200,000 (100%)
Initial deposit £10,000    (5%)
Equity loan     £30,000    (15%)
Remaining mortgage  £160,000    (80%)
Is a new build a good investment? 
Are there any restrictions on the type of property I can purchase?
Can I get help with benefits to pay the Help to Buy fees, if I lose my job?
Do I have to pay stamp duty?
Can I change the property in any way?
Can I buy a home off-plan?
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