HERE'S HOW IT WORKS ON A £200K HOME
HELP TO BUY (SCOTLAND) - EQUITY LOAN
• Just a 5% deposit required
• This scheme is available for new build homes only
• Available to both existing homeowners and first-time buyers
• The government will lend you up to 15% of the value of the new property
• You will own 100% of your home
• Equity loan is completely interest free
Help to Buy (Scotland) is an ‘equity loan’ where the Government will loan you up to 15% of the value of your new build home. Set up to help more people across the country make the aspiration of home ownership a reality and increase the supply of low deposit mortgages as well as new housing. From Friday 5th February 2021, new applications for this scheme will no longer be accepted.
QUALIFYING FOR HELP TO BUY (SCOTLAND)
If you have a 5% deposit and want to buy a new build home, you’ll be able to access the Help to Buy (Scotland) scheme. Borrowers will need to meet appropriate tests to ensure they can pay back the mortgage, as well as passing their chosen lender’s usual credit and affordability checks. Subject to meeting this eligibility criteria and affordability checks, you’ll be able to use either Help to Buy (Scotland) scheme to purchase a property with a value up to £200,000.
PAYING BACK THE EQUITY LOAN FOR HELP TO BUY (SCOTLAND)
The equity loan can be repaid at any time within 25 years (or the terms of the mortgage), or on sale of the property.