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
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