FIND­ING EX­TRA FI­NANCE

Grants and loans to help your bud­get are read­ily avail­able for new build and ren­o­va­tion – you just have to know where to look

Scottish Field - - ABODE -

There are times when sourc­ing fi­nance for a self-build scheme can as­sume night­mare pro­por­tions. But a new fund was launched last year by the Scot­tish Gov­ern­ment to help solve this, and breathe life back into the self­build mort­gage mar­ket.

Sim­ply, there are loans avail­able to help build dur­ing the con­struc­tion pe­riod only. Once the project is com­plete the prop­erty re­ceives a tra­di­tional mort­gage and this pays back the gov­ern­ment loan. The self-build loan in­cludes fees and in­ter­est on the sum bor­rowed.

The Scot­land Self-Build Loan Fund was launched last year and will run for three years and of­fer loans of up to £175,000 to help with con­struc­tion fees for self-build projects in both ur­ban and ru­ral ar­eas.

This is for the house build­ing project only. The fund can­not be used to cover the cost of buy­ing land. Fur­ther­more, all ap­pli­cants must own the land for the build­ing be­fore ap­ply­ing.

The fund is ad­min­is­tered by High­lands Small Com­mu­ni­ties Hous­ing Trust and fol­lows on from a suc­cess­ful pi­lot scheme in the High­lands and is­lands.

To ap­ply for a loan it has to be proved that you could not get self-build fi­nance from the main­stream mort­gage mar­ket place.

Self-builders must be able to prove they are ‘ready to go’ with plan­ning per­mis­sion in place. Visit www.hscht. co.uk for more in­for­ma­tion.

Other sources of grants and loans

When plan­ning your fi­nances do not for­get that other bod­ies of­fer grants for as­pects of the project.

For new-build and ren­o­va­tions it is worth re­mem­ber­ing that Home En­ergy Scot­land has in­ter­est-free loans and grants, in some cir­cum­stances, for in­stalling re­new­able en­ergy in homes and up­grad­ing ex­ist­ing heat­ing. There are a va­ri­ety of op­tions on of­fer and a thor­ough study of their web­page could prove re­ward­ing.

There is a Scot­tish Gov­ern­ment non­means tested grant of £800 per prop­erty avail­able for im­prov­ing pri­vate wa­ter sup­plies; this is ad­min­is­tered by lo­cal coun­cils.

The Crofters Com­mis­sion gives grants for crofters to im­prove and main­tain croft houses to at­tract and re­tain more young peo­ple to croft­ing in the High­lands, Western Isles, Ar­ran and Ar­gyll.

‘We launched a £4m self-build loan fund of­fer­ing fi­nan­cial as­sis­tance to self builders in Septem­ber 2018. This was de­vel­oped to ad­dress mar­ket fail­ure in terms of self-build fi­nance and to en­cour­age the mar­ket to rein­tro­duce ap­pro­pri­ate self-build fund­ing. This is a na­tional fund and is avail­able in both ur­ban and ru­ral ar­eas.’ – Kevin Ste­wart MSP, Min­is­ter for Lo­cal Gov­ern­ment, Hous­ing and Plan­ning

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