First-time buyers will be eligible for interest-free loans worth £10,000 under a new shared-equity scheme set up by the Scottish Government.

The First Homes Fund, which will contribute towards a deposit, will be open to first-time buyers purchasing a new-build or older property up to a value of £300,000.

It is expected the first phase of the fund will support 2,000 households from next month, and 50,000 during the course of the new Parliament north of the border.

Out of reach

Shirley-Anne Somerville, Cabinet Secretary for Social Justice and Housing (pictured with Scottish First Minister John Swinney), told the Parliament: “For too many people across Scotland, particularly younger people and first-time buyers, home ownership has felt increasingly out of reach.

“In communities the length and breadth of our nation, we are hearing the same story; people saving what they can but finding that the cost of a deposit is simply too great a barrier,” she said.

“That is the context in which this Government will act. This is a direct response to the experience of people across Scotland.

Broader programme

“The Fund sits within a broader programme of action and supported by a record £4.9billion investment in affordable housing over the next four years.”

The Government will have an equity share in the property, although the homeowner will own and have title to the property.

There are no monthly payments to be made and no interest will be charged. The Scottish Government’s percentage equity share would normally be repaid when the home is sold.

Picture: BBC News

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