The Help to Buy Scotland scheme is designed to help buyers purchase a new build property that they otherwise wouldn’t be able to afford.
The scheme was launched in October 2013 and is open to both first time buyers and existing homeowners. It is available for the purchase of new build properties from participating home builders.
What properties are included?
- New build property from a participating home builder
- Up to £400,000 in value
- Located in Scotland
- The scheme is open to first-time-buyers as well as home movers
- The buyer must be able to contribute a deposit of at least 5% of the full purchase price
- The mortgage and deposit combined must cover at least 80% of the full purchase price
- The Scottish Government will provide an equity stake of up to 20% of the total purchase price
This means that with a 5% deposit, you will need to secure a mortgage for 75% of the total value of the property, and the Scottish Government will provide the remaining 20%.
How much deposit do I need?
The deposit you will need is dependent on the total value of the property you wish to purchase.
For example, a buyer looking to purchase a £200,000 property under the scheme will need:
|Equiry Loan (provided by the government)||20%||£40,000|
|Mortgage (secured from a commercial lender)||75%||£150,000|
|Property Purchase Price||£200,000|
As with all loans, the affordability of this scheme is dependent on the individual. Benefits of the scheme are that it enables more people to take their first steps onto the property ladder by lowering the amount required for a deposit.