How does it work?
Applications to the fund must be made through an administering agent and if successful, will be subject to a fee. Successful applicants will receive an award letter and missives should be concluded within three months of the date of this letter. Settlement should take place within six months of missives being concluded.
Successful applicants will own the property outright and no monthly payments, or interest are due to the government, however the loan must be repaid when the property is sold (or you can increase your share of the equity while you live in the property).
In essence, this means if you receive a 10% equity loan from the Scottish Government then when you sell your home you will repay 10% of the sale price, which may be higher, or lower, than the purchase price.
Applicants to the First Home Fund will not be able to apply to other home ownership schemes in Scotland: Help to Buy (Scotland), New Supply Shared Equity and Open Market Shared Equity. An independent financial adviser will be able to advise whether or not this scheme is suitable for you, or whether one of the other shared equity schemes operating in Scotland is more appropriate.
You own 100%
of your home