NEXT HOME MORTGAGES ARE DELIGHTED TO ANNOUNCE THAT THE SCOTTISH HELP TO BUY SCHEME IS NOW AVAILABLE
The Scottish government has unveiled a new shared equity scheme designed to help people get onto and up the housing ladder. Ministers are allocating £220m over three years for the Help to Buy (Scotland) scheme.
It will help eligible buyers with an equity loan of up to 20% of the purchase price of a new-build home. Housebuilders in Scotland said the scheme could be a “game changing initiative” for the industry.
If you thought Help to Buy (Scotland) was just for first time buyers, then think again – it’s also for those looking to step up on to the next rung of the property ladder and you may only need a 5% deposit.
The Scottish initiative is similar to the UK government’s Help to Buy scheme, which has been operating in England since April. From Monday the 30th of September the scheme will be open to all first-time buyers and existing homeowners who are buying a new-build home from participating home builders.
Here’s how Help to Buy would work on a property worth £200,000
Purchase price £200,000
Deposit 5% £10,000
Equity Loan 20% £40,000
The equity loan can be repaid at any time during the term or at sale of the property. This also means that the buyer will have access to 75% mortgage rates which are at an all time low at present.
The shared equity scheme will apply to homes worth up to £400,000 in Scotland. The limit in the English version of Help to Buy is £600,000. The home must be a buyer’s only residence and they must not own another home.
If you are looking at a new build home call our Help to Buy team at Next Home Mortgages and we will guide you through the process.