What is Help to Buy Scotland?

What is Help to Buy Scotland?

Many credit-worthy people are finding it difficult to get a mortgage today because of the large deposits needed following the financial crisis.

The Help to Buy (Scotland) scheme is a Scottish Government scheme to help people to buy a new build home from a participating home builder. It provides help to the home buyer of between 10% and 20% of the purchase price. The three year scheme runs until 31 March 2016.

The scheme is open to all home buyers, although you should not own any other property at the time your mortgage is completed.

Where is Help to Buy available?

Help to Buy is available for new build developments in Scotland on homes up to £250,000.

There are separate schemes in England and Wales. In England it is available for homes up to £600,000 and in Wales up to £300,000.

What type of home is eligible?

The homes that are provided under the scheme are new build homes from a home builder who has been approved to participate in the scheme. A list of registered builders is available on the Help to Buy (Scotland) website (www.scotland.gov.uk/htb). Under the scheme, the Scottish Government will help you to buy a new build home so you may not have to fund all of it initially. 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

How does it work?

• Your mortgage lender will likely need you to contribute a deposit of around 5% of your mortgage
• Your deposit and mortgage amount will cover a combine minimum value of 80% of the total purchase price
• Your mortgage must be a repayment mortgage of at least 25% years
• Your home must not exceed the maximum purchase price of £250,000
• Your mortgage must be from a qualifying lender

Does the scheme guarantee my payments?

The scheme does not guarantee your payments. You are responsible for paying your mortgage under this scheme in exactly the same way as any other mortgage.

Am I eligible for the scheme?

You will need to contact a participating home builder. The home builder will in most cases let you see the show home at the new build development.

If you can reasonably afford more than 90% of the full purchase price, you will not be eligible to receive assistance under the scheme.

For more information about Help to Buy, fill out our online enquiry form.

Terms and conditions apply. Subject to availability.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE