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 pay the majority share and the Scottish Government pays the rest under an agreement which it enters with you. You are the outright owner, however, the Scottish Government holds a security over the share it has funded.
For example, if you buy a new home for £100,000, the Scottish Government funds 20% of this purchase price through a shared equity scheme. 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.
We offer mortgages in conjunction with the Scottish Government’s range of shared equity schemes including:
Help to Buy Mortgages
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.
The Low-cost Initiative for First Time Buyers (LIFT) scheme
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:
The Open Market Shared Equity Scheme – to allow first time buyers to buy a property on the open market.
The New Supply Shared Equity Scheme – to allow first time buyers to buy a new build property from a Registered Social Landlord (RSL) – normally a housing association or housing co-operative.
With a shared equity mortgage, you could become a homeowner with no deposit required!
For more information, contact our mortgage team on 0141 274 9933
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All loans are subject to status and meeting our lending criteria, which will include a credit reference assessment.
Maximum loan to income is 4 x annual income (benefits can only be taken into consideration if they are payable for the full term of mortgage – evidence of this will be required). For non-contractual regular income such as bonuses or regular overtime, some of this income may be considered if proof available over a two-year period.
A higher lending charge may be applicable, depending on the amount you wish to borrow and the value/purchase price of your property. We charge 0.5% of the loan value for LTV between 85% and 90% and 1% of the loan value for LTV greater than 90%. The maximum you can borrow is 95% of the value or purchase price (whichever is lower) of your property.
An early repayment charge of 2% applies during the promotional rate period.
A redemption administration fee is payable when your mortgage is repaid in full, the current fee is £125.
A valuation fee may be payable, the fee noted in our illustration is an average, please contact the office to find out what the fee will be (if a fee is payable).
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Please check first that you are eligible to apply:
You are aged 18 or over
You have a UK bank account in your own or joint names
You are a permanent UK resident
You have never been bankrupt or had a Court Decree
To complete your application you will need:
Your current employer's address details
Details of monthly income and outgoings
Bank or building society details (sort code and account number)
To enable us to make a decision on your loan application we will contact Credit Referencing & Fraud Prevention Agencies. This will register a search against your credit record and if your application is successful we will share the information we hold for you with these agencies. Further details are available in our Privacy Notice
It is important that you read the Privacy Notice document above. If there is anything that you do not understand, please contact us.
Please be aware that the longer you take to pay back a loan, the more you will pay back in interest. If you go for a shorter term your monthly repayment might go up, but you'll save in interest and pay back your loan faster.