"This new funding scheme offers a greater degree of flexibility to first time buyers and allows them to benefit from the lower interest rates"
Launched today, applications are now open for a new national pilot scheme helping first-time buyers with the deposit for a new home.
The Scottish Government’s First Home Fund will provide a total of £150 million until March 2021 to help at least 6,000 people buy their first home.
Paul Denton, CEO of Scottish Building Society, said: “We are delighted and proud to be one of the first lenders to offer this new scheme.
“This new funding scheme offers a greater degree of flexibility to first time buyers and allows them to benefit from the lower interest rates available on lower ‘loan to value’ mortgages. Compared to other funding schemes, there are no limits on the property value and the government contribution could be as high as 49% allowing for more people to purchase their first home.”
Ian Wilson, head of Halifax Intermediaries, commented: “We are committed to supporting first-time buyers as part of our pledge to help Britain prosper and welcome the introduction of the First Home Fund to help aspiring homeowners in Scotland.
“This will help address one of the biggest obstacles first-time buyers face getting onto the property ladder, and along with the Help to Buy scheme, provide more options for people to become homeowners.”
First Minister Nicola Sturgeon added: “For many people, getting a deposit together is often an obstacle in buying their first home. Removing barriers and supporting people to buy the home they want is at the heart of this new fund. That is why we are acting to make the process fairer, to offer a helping hand to those buying a new home.
“The First Home Fund will provide first-time buyers with up to £25,000 towards the cost of buying a home that meets their needs and is located in the area where they want to live.
“Since 2007, the Scottish Government has provided more than £1.2 billion in shared equity schemes, which have helped tens of thousands of people into home ownership, particularly those aged under 35 and this new scheme adds to the support we are providing.”
