For many first time buyers, affordability can be a barrier to getting onto the housing ladder but with the help of the Scottish Government's “First Home Fund*”, your dream CALA home could be more affordable to you than you thought.
The First Home Fund is a Scottish Government scheme to help first time buyers purchase their first home. It provides up to £25,000 as an equity loan or 49% of the purchase price (whichever is lower) towards the purchase of both newly built and existing properties in Scotland.
The Scottish Government has temporarily closed the First Home Fund and it is not available for homes completing before 31 March 2021. It will be available if you're planning to buy your first home between 1 April 2021 and 31 March 2022.
With the help of the Scottish Government's First Home Fund shared equity scheme, you could soon be able to own your dream CALA home.
First Home Fund is available on all homes with no maximum value. You will need a deposit of at least 5% of the value of your chosen home and you must plan to take out a mortgage of at least 25% of the purchase price.
The scheme is only available to first time buyers. We will put you in touch with an independent mortgage advisor to help you find out if you qualify and help you apply.
The Scottish Government could put up to £25,000 as an equity loan or 49% of the purchase price (whichever is lower).
The equity loan is interest free and can be repaid at any time. On sale of your home, you will need to pay back the percentage of equity still outstanding.
Who is it for?
The scheme is open to all first-time buyers in Scotland who are taking out a mortgage. A first time buyer is anyone who does not own, or has previously owned, a property (as either a sole or a joint owner) in Scotland or anywhere else in the world.
While the scheme is open to all first-time buyers there are a few requirements that you will need to be aware of:
A second charge over your home is required. The First Home Fund cannot be used in conjunction with part exchange or any Scottish Government shared equity schemes (e.g. Help to Buy (Scotland) Affordable New Build, Help to Buy (Scotland) Smaller Developer, New Supply Shared Equity or Open Market Shared Equity).
Availability of other incentives/offers subject to lenders criteria and CALA’s discretion. Your mortgage lender’s deposit requirements may vary, but you should usually expect to contribute a deposit of at least 5% of the purchase price.
Available on selected properties, and subject to the Government’s specific terms, conditions and qualifying criteria.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS. PLEASE SEEK INDEPENDENT FINANCIAL ADVICE.