How Does Help
to Buy Work in Scotland?
Here is how the Help To Buy (Scotland) Scheme can work for you..
The Help to Buy (Scotland) Scheme is a
Scottish Government scheme which helps buyers with the funding for a
new-build home from a participating home builder. The Government will
lend you up to 15% of the property value through an equity loan which
can be repaid at any time during the loan term or on the sale of your
home.
How does it work?
- The Government provides an equity
loan of up to 15% the cost of your new home
- You arrange a mortgage of up to
80%
- You pay a deposit of 5%
Key benefits
- Open to all buyers, not only
first-time buyers
- Government loan is interest free
- All you need to secure your new
home is a minimum deposit, which can be 5% of the
purchase price
Help To Buy Example
|
Worked Example for a home where the sale
concludes prior to 31st March 2017
|
£
|
%
|
|
Purchase price of
new home
|
220,000
|
100
|
|
Mortgage obtained by
buyer of 80%
|
176,000
|
80
|
|
Buyer pays 5% deposit
|
11,000
|
5
|
|
Total Contribution
from buyer
|
187,000
|
85
|
|
Scottish Government
Assistance of a 15% equity stake
|
33,000
|
15
|
Are you eligible?
The maximum threshold sale price for
the scheme is as follows:
- ·
For financial year 2016/17
(transactions concluding up to 31 March 2017) the threshold price is £230,000
- ·
For financial year 2017/18
(transactions concluding up to 31 March 2018) the threshold price is £200,000
- ·
For financial year 2018/19
(transactions concluding up to 31 March 2019) the threshold price is £200,000
Mo More information on
the help to buy scheme can be find on the Scottish Government’s website.