What is a shared equity mortgage?

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.

First Home Fund

Glasgow Credit Union participates in the First Home Fund scheme, designed to help first time home buyers purchase a property in Scotland.

The First Home Fund is run by the Scottish Government and aims to help first-time buyers purchase a property. Up to £25,000 is available to all first-time buyers towards the purchase of both new build and existing properties.

With the First Home Fund, you will own the property outright, but the Scottish Government will contribute a maximum of 49% equity stake based on the property valuation or purchase price, whichever is lower, up to a maximum of £25,000. The remaining stake is made up through a deposit contribution and mortgage from a bank or building society. There are no monthly payments to be made towards the Scottish Government and no interest will be charged. The Scottish Government equity stake is repayable when you sell your home.

In order to take part in the scheme, you will be required to provide a minimum deposit of 5% of the purchase price (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price. You must also be a first-time buyer who does not own, or has previously owned, a property in Scotland or anywhere else in the world.

First Home Fund – Guidance Leaflet for Buyers

For more information, contact our mortgage team on 0141 274 9933

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We also offer mortgages in conjunction with the Scottish Government’s other 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.


First Home Fund:

First Home Fund is subject to availability, status and eligibility. There is a limit of one application per property. You can submit a joint application, however, you will be limited to one award of £25,000. Your mortgage must be at least 25% of the purchase price. Your mortgage must be capital repayment. The property must be the sole residence of all applicants. The scheme is not available for buy-to-let properties. You cannot apply to other 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) while also applying to this scheme. If you have an open application to any other shared equity scheme in Scotland, you must withdraw this before you apply to this scheme. However, you are able to use a Help to Buy: ISA or Lifetime ISA to put towards your deposit. The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or the purchase price (whichever is lower). If you purchase a property for less than the valuation figure then the maximum Scottish Government contribution is £25,000 or 49% of the purchase price.


  • For all above shared equity products, the maximum Glasgow Credit Union will lend is 85% of the property value.
  • 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).