There is help out there for you to buy a new home
The Scottish Government is helping buyers to purchase their property by taking an equity stake of between 10% and 20% of the value of the property
Now is a great time to buy your new home – with Help to Buy you could find the home that’s right for you with just a five per cent deposit.
Whether you’re looking to take the first step on the property ladder or are searching for something bigger to accommodate your growing family – new is for everyone and with mortgage rates at an all-time low it’s easier to get the home you want for less.
With a Help to Buy equity loan you could find the home that’s right for you with just a five per cent deposit - the Scottish Government will lend you up to 15 per cent of the property value through an equity loan.
You’ll only need to secure up to an 80 per cent mortgage from a bank or building society, making that first step a little easier.
For 2016/17 the maximum property value is £230,000 with the Help to Buy (Scotland) Affordable New Build Schemes.
The main Help to Buy (Scotland) Affordable New Build Scheme is available to larger homebuilders while the Help to Buy (Scotland) Smaller Developers New Build Scheme is available to smaller home builders. The rules to both schemes are identical and the agents administering the schemes will identify which scheme your application is to be processed under.
The schemes are only available on new build homes from participating home builders and on homes up to a maximum value of £230,000 for purchases which complete on or before 31 March 2017 and £200,000 for purchases on or before 31 March 2018.
Your mortgage lender is likely to require you to contribute a deposit of around five per cent, your mortgage and deposit must cover a combined minimum 85 per cent of the total purchase price.
Your mortgage from one of the participating lenders must be a repayment mortgage, of at least 25 per cent and cannot be an interest-only first mortgage; the Scottish Government will help buyers to purchase the property by taking an equity stake of up to a maximum 15 per cent of the value of the property; no annual interest is charge on your equity stake; the Scottish Government’s equity stake can be repaid at any time and is based on the value of the property at the time of the repayment; the scheme is only available to those who are unable to afford to purchase the property without the Government purchasing an equity share there are currently eight participating lenders offering mortgages for the Help to Buy (Scotland) Affordable New Build schemes, please contact them to check what their lending criteria is.
If you are interested in the scheme, you should read the information leaflet for buyers which will provide you with important information on how the scheme operates.
Once you have read the information leaflet, you will need to search for Help to Buy Affordable New build homes that are for sale by a participating home builder.
You should also speak to an Independent Financial Advisor, good advice could save you money and a lot of worry.