A new finance scheme – First Home Fund – aims to get people on to first steps of property ladder

FOR a while, it seemed that first-time buyers were offered support left, right and centre to help get them on to the property ladder.

The likes of Help to Buy ISAs and shared-ownership loans were made available to offer people a way to own their first home.

However, 2019 saw an end to initiatives that helped young people to own their first property.

The biggest casualty, perhaps, was the Help to Buy ISA – as the helpful money-saving tool is now closed to new applicants. But people in Scotland needn’t worry as the Scottish Government has announced the First Home Fund.

Now available to those seeking to purchase their first property, the First Home Fund initiative grants buyers a contribution of up to £25,000 towards their first home in Scotland.

This could be a huge boost to those who would like to get on the property ladder sooner rather than later, and with a helpful financial hand along the way.

Launched on December 18 last

Picture: HOPE HOMES year, the First Home Fund is a shared-equity scheme, which means the Scottish Government will own a percentage of the property value.

To qualify for the fund, you must contribute a deposit of five per cent of the purchase price and the mortgage must be a minimum of 25 per cent of the purchase price of your chosen property.

There are no restrictions on the price of the property you can buy and the First Home Fund is open to both joint and single purchases.

Unlike other help-to-buy schemes, the First Home Fund isn’t limited to brand-new homes.

It applies to both new-builds and existing properties, meaning if you find an old cottage out in the countryside that you’ve set your heart on, you won’t miss out on this helpful funding.

A range of banks are already part of the Government First Home Fund initiative and many major lenders can offer mortgages in collaboration with the scheme.

These include the Bank of Scotland, Barclays, Glasgow Credit Union, Halifax, Leeds Building Society, Nationwide, Scottish Building Society, Scotwest Credit Union and the TSB. To see if you’re eligible for the fund, visit linkhousing.org.uk/firsthomefund and fill out the online application form.

However, it’s recommended that you speak to an independent financial adviser or mortgage adviser before applying to the scheme as you must have an offer accepted (even if verbally) on an existing home or reserve a new-build property before you can apply.

More information on the First Home Fund and eligibility requirements can be found on the Scottish Government website, or you can contact the First Home Fund team on firsthomefund@linkhaltd. co.uk and 0330 303 0555.