Help to Buy Scotland
Relaunched in March 2016 and set to last for at least three years, Help to Buy Scotland is aimed at assisting buyers of new houses across Scotland. After putting down as little as 5% of the new house price as a deposit, the Scottish government will then give you an equity loan of up to 15% of the property price. You must then find a mortgage for the remaining 80%.
The popular government initiative is divided into two parts. Help to Buy (Scotland) Affordable New Build Scheme and Help to Buy (Scotland) Smaller Developers. Housebuilders who are part of the scheme can be found here. Housebuilders participating in the Help to Buy (Scotland) Affordable New Build scheme.
Criteria needed for Help to Buy Scotland
This initiative is only available for new houses and from housebuilders taking part in the scheme. From 1 March 2016 to 31 March 2017 the maximum price of a new house must be £230,000 or less, then the maximum price reduces to £200,000 until 31 March 2018 and then further reduces to £175,000 until 31 March 2019. In addition, the new house must be your sole property. It cannot be rented out after it is bought. You must also be eligible for a mortgage for the remaining 80% of the property’s value.
How do you apply for Help to Buy Scotland?
Once you’ve found a new house you would like to buy, you should first contact an independent financial advisor or a mortgage lender to go over your application. You can then submit the application form to an administrating agent. This agent will give you an affordability test to ensure you will not be spending more than 45% of your net disposable income by taking out this mortgage. Remember, you can only make your application within nine months of your new home’s estimated completion date. Once you get the go-ahead to progress, a full mortgage can then be applied for. The sooner you apply for Help to Buy Scotland initiative the better, since it is a demand-led scheme. It has been open to buyers since 1 March 2016 and there is a fixed budget during 2016/17.
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