The housing market is one that is always rising and falling and people find it harder and harder to be able to afford to buy a home and often resort to renting due to not being able to afford a deposit. The Help to Buy scheme is a government run scheme which can help those looking to move home and allow them to pay a deposit as low as only 5%.
New Figures show that in the past 8 months, around 3750 approved applications has went through and this has resulted in thousands of sales of Scottish homes through the help to buy scheme. With over 500 of these sales being in the West of Scotland including our area of Lanarkshire..it is helping grow areas of housing which were previously struggling.
What is the Help to Buy scheme? As we mentioned, the Help to Buy scheme is run by the Scottish government and it’s aim is to get more people on the property ladder without having to fork out the full purchase price. The plans aims are to create a situation where a long term mortgage plan is more affordable for the buyer and it
How does it work? If you are looking to purchase a house through the help to buy scheme then you will either have to choose a new build home from participating home builders of a home to the maximum value of £400,000. You will be required to contribute a deposit of approximately 5% and between your mortgage and deposit you will pay a minimum 80% of the total price of the home (A repayment mortgage must be taken out as an interest-only first mortgage will not be accepted by the Help to Buy scheme). The Scottish Government then takes an equity stake of up to 20% of the value of the property in order to help you buy your home for a lower price (this can be repaid at any time).
Am I eligible for the Help to Buy Scheme? YES! The Scottish help to buy scheme is available to anyone looking to move home, wither it be a first time buyer or someone looking to move into a bigger, family home. If you are looking to buy a home with a low deposit and low long term price, then you are eligible for the Help to Buy Scheme.
What home builders are included in this scheme? There is over 150 different home builders who participate in this scheme and there are always new home builders joining the Help to Buy scheme due to its growing popularity. For a full list of current home builders which are involved, visit the Scottish Government website here.
Empire Property have our own in house mortgage expert who can help you get on the property ladder with a low deposit through the Help to Buy scheme. Please get in touch today.