First Home Fund

The First Home Fund is an initiative introduced by the Scottish Government which aims to help first-time buyers with a contribution of up to £25,000 towards the purchase of their first 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. Although the Scottish Government will have an equity share in the property, you will own the property outright. There are no monthly payments to be made towards the Scottish Government and no interest will be charged.

You will normally repay the Scottish Government’s percentage equity share when you sell your home, however you can choose to pay this off earlier.

Please note that lenders will have their own individual requirements when providing a mortgage. The lender or a mortgage advisor will be able to fully explain these requirements to you.

Key points:

  • Available to all first-time buyers.
  • You must take out a capital repayment mortgage to qualify for the scheme.
  • A minimum deposit of 5% of the purchase price is required from your own funds (subject to individual lender requirements).
  • There are no price caps on the value of the property that can be purchased through the scheme.
  • The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or the purchase price (whichever is lower).
  • 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.
  • Joint applications are permissible and only one of the applicants needs to be a first-time buyer in order to qualify for the scheme.
  • The property must be the sole residence of all applicants. The scheme is not available for buy-to-let properties.
  • The Administering Agent will request a fee of £550 when the Award Letter is issued. This must be paid by the applicant at least 3 weeks prior to settlement. The fee will be refunded in full to the applicant should their application fail at any time, except in cases where there has been misrepresentation or fraud on the part of the applicant.
  • If you do not conclude missives within 3 months then your application will be cancelled. This period starts from when an Award Letter is issued. Settlement must occur within 6 months of missives being concluded.
  • 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. However, you are able to use a Help to Buy: ISA or Lifetime ISA to go towards your deposit.

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Example purchase:

Example property valuation and purchase price – £250,000

5% deposit – £12,500*

Mortgage – £212,500

Applicant’s deposit and mortgage – £225,000 (90% equity share)

Scottish Government contribution – £25,000 (10% equity share)

This means that when the property is sold, you will receive 90% of the final sale price and the Scottish Government will receive 10%. This does not mean that the Scottish Government has an ownership right to the property. You will own the property outright and hold the full title.

*Subject to individual lender requirements.


Available from December 2019 until March 2021. Terms and conditions apply.

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