First time buyers given access to £150m fund to help pay deposit

23/12/2019 15:45:42

First time home buyers can now access up to £25,000 from a Scottish Government fund to help them gain a foothold on the property ladder.

From this week, cash help is available through the First Home Fund to help first time buyers meet the cost of a deposit for their new home.

The £150million scheme is expected to help more than 6000 people become homeowners for the first time.

Scottish Building Society and Halifax Intermediaries are among the first lenders to take part in the scheme that will run until March 2021.

Craig Smith, director of Scottish Property Centre Shawlands, said he anticipated a high degree of take-up of the scheme in Glasgow and its surrounding areas.

He said: “As well as providing cash support for first time buyers, the scheme is highly flexible, allowing them to take advantage of lower interest rates available on lower loan-to-value mortgages.

“Compared with other funding schemes, there’s no limit on the value of the property and the contribution from the Scottish Government could be as much as 49%, helping more people to buy a home for the first time.”

Ian Wilson, head of Halifax Intermediaries, said: “We are committed to supporting first-time buyers as part of our pledge to help Britain prosper and welcome the introduction of the First Home Fund to help aspiring homeowners in Scotland.

“This will help address one of the biggest obstacles first-time buyers face getting onto the property ladder, and along with the Help to Buy scheme, provide more options for people to become homeowners.”

Nicola Sturgeon, the First Minister, added: “For many people, getting a deposit together is often an obstacle in buying their first home. Removing barriers and supporting people to buy the home they want is at the heart of this new fund. That is why we are acting to make the process fairer, to offer a helping hand to those buying a new home.

“The First Home Fund will provide first-time buyers with up to £25,000 towards the cost of buying a home that meets their needs and is in the area where they want to live.

“Since 2007, the Scottish Government has provided more than £1.2 billion in shared equity schemes, which have helped tens of thousands of people into home ownership, particularly those aged under 35 and this new scheme adds to the support we are providing.”

For more information on accessing the First Home Fund, call your local Scottish Property Centre branch or visit www.scottishpropertycentre.net

 

 

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