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First Home Fund Scotland
Information for First Time Buyers about the First Home Fund Scotland

First Home Fund SCOTLAND


We’re Cameron Stephen & Co, solicitors in Edinburgh specialising in helping first time buyers.

And we offer a special fee for First Time Buyers.

Here we give you a brief overview of the new First Home Fund recently started by the Scottish Government.

We hope you will find it useful.

What is the First Home Fund Scotland?

If you haven’t already heard about it, the First Home Fund Scotland is a new fund started by the Scottish Government in December 2019 to give financial help first time buyers in Scotland.

The First Home Fund Scotland is limited (at least initially) to £150 million and is expected to give assistance to around 6,000 first time buyers.

This is on a first-come first-served basis and so you might need to hurry.

You can get up to £25,000

First time buyers will be able to get up to £25,000 from the fund to help buy their first home, but it is limited to 49% of the value of the property.

But for most first time buyers in Edinburgh, because of property prices, you will be likely to get the full £25,000.

It has to be remembered that this is not a gift from the Government, it is a type of loan which is referred as Shared Equity.

Who is a First Time Buyer?

To be eligible for the fund you have to be a first time buyer – ie you do not own, or have owned previously, any property either in your name or jointly with someone else anywhere in the world.

But there is some relaxation of this if you are buying with your partner.

In that case, so long as one of you is a first time buyer, your partner doesn’t have to be.  And so you would still be entitled to claim from the Fund. But, at the time of purchase, your partner must have sold any and all other property owned by them.

How do you apply?

The application is done online on the Government’s website

It looks easy and straightforward to complete and submit, but if you need assistance, your mortgage advisor will be able to do this on your behalf or help you.

Important to remember you cannot just go online to apply.  You do have to have reached a certain stage in your purchase first:

  • You must first have offered successfully on a property.
  • You will also need a Mortgage Agreement in Principle from a lender.
  • You will need 3 months’ pay slips
  • You will need copies of most recent award notices for benefit payments
  • A copy of the Home Report for the property you are buying

What is Shared Equity?

When you get the funding from the First Home Fund, the Scottish Government take a share in the future equity of your property.

This means that when you decide to sell your property, the Government will be paid a share of the sale price based on their initial funding of up to £25,000.

For example if the £25,000 represents 15% of the original purchase price, then on the sale you will pay the Government 15% of the sale price.

Special Fee Offer for First Time Buyers

We offer a great value fixed fee for first time buyers.

Need help finding a mortgage?

Why not get in touch with Alasdair who will be able to help you?

Find out more about buying your first home

You can find out a lot more information on our website