The Scottish Government has announced the Help to Buy scheme will be extended until March 2021. Help to Buy (Scotland) is a shared equity scheme aimed at helping both first-time buyers and home movers buy their new build home.
Help to Buy (Scotland) is made of up two schemes. The Affordable New Build Scheme available to larger homebuilders and the Smaller Developers New Build Scheme for smaller home builders and is available through participating Housebuilders. The agents administering the schemes will identify which scheme your application will be processed under.
The rules covering the two schemes are identical:
- You must have a deposit of at least 5%.
- Your deposit and mortgage must cover a combined minimum of 85% of the purchase price.
- The Scottish Government will as a result take a stake of up to 15% of the purchase price holding security over this proportion till you own your home outright.
This cannot be an interest-only first mortgage.
The maximum threshold for the value of the property depends on what year your application is completed. This scheme is only available to those who are unable to afford to purchase the property without the Government purchasing an equity share in the property. The schemes are not open to single people requiring a mortgage more than 4.5 times their income, or couples for more than 3.5 times their joint income.
There are two other shared equity schemes in Scotland, which were created for first-time buyers only, under its LIFT (Low-cost Initiative for First-Time Buyers) programme.