Shared equity mortgages provide a route to buying a home without having to cover the entire cost of it. When buying a shared equity home on the open market, or from a housing association, you fund the majority share through a deposit and a mortgage, with the remaining share being provided by the Scottish Government.
For example, if you buy a new home for £100,000 and your deposit and mortgage pays for 80% of the home’s value, the Scottish Government will hold a 20% share. Therefore, you pay £80,000 and the Government pays £20,000. If you later sell your home, 20% of the sale value of the property will be returned to the Scottish Government.
There are no monthly or interest payments to the Scottish Government. You will own the property outright, however, the Scottish Government holds a security over the share it has funded and you can pay this back when you sell your property or pay this back sooner by increasing your equity stake.
We offer mortgages in conjunction with the Scottish Government’s range of shared equity schemes, including:
We offer mortgages in conjunction with the Government’s Help to Buy (Scotland) Affordable New Build Scheme. If you want to buy a new build home but can’t afford the total cost, you may be able to get help through the scheme. It provides help of up to 15% of the purchase price of an affordable new build home (from a participating home builder) and is available to both first-time buyers and existing homeowners who are looking to move home.
Up to 40% funding is available towards the purchase price with the LIFT scheme, which is aimed at first time buyers (terms and conditions apply). The scheme brings together a few different ways to help access homeownership, including:
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE