Started in 2013, Help to Buy (Scotland) is a Scottish Government scheme which helps people buy new build homes from participating builders.
Although each individual case is different, generally if you can raise a deposit of around 5% and secure a mortgage for around 80% of the price of a new build property, the government will put up the remaining 15% and take an equity share in the property. The total amount the government will put up is dependent on your circumstances.
Although you can repay the government at any time, the government will only ask for the money back when you come to sell the property.
There is no interest payable on money secured through Help to Buy (Scotland), but assuming your property value rises, then so will the value of the stake the government holds in it – and this will be reflected in the amount of money they receive once it is sold.
If your property has fallen in value when you come to sell, the government investment will go down in line with your own.
There are a number of rules of Help to Buy (Scotland), including:
- Help to Buy (Scotland) is only available on new build homes from participating builders
- Help to Buy (Scotland) is only available on properties up to a maximum value of £200,000
You can read a summary of all of the criteria at www.scotland.gov.uk/htb
There is a limited amount of funds available each year for Help to Buy (Scotland) and the scheme will finish on 31st March 2021.
The scheme will remain open for business in each year as long as funds are available – so it is very much a first come, first served basis.
Help To Buy ISAs
If you are saving to buy your first home, you should consider opening a Help To Buy ISA. For every £200 you save, the Government will give you a £50 bonus. The maximum government bonus you can receive is £3000. Help To Buy ISAs are available for each first time buyer rather than each household; so, for example, if you are saving to buy your first property with a partner, you could both have an ISA and receive up to £6000 in government bonus.
You can read a summary of Help to Buy ISAs at www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/
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When you purchase property, a process known as conveyancing, there are various costs involved. The conveyancing fee is what Wallace Quinn will charge you for our services. There are also outlays and taxes imposed by government which we will collect and pay on your behalf. If you would like an instant online quote for all fees, outlays and taxes, try our New Build Conveyancing Calculator.