What is it?
The Help to Buy (Scotland) scheme means people can purchase a new-build home without the need for a large deposit.
If you want to buy a new build home but can't afford the total cost, you might be able to get help through the Help to Buy (Scotland) Affordable New Build scheme.
Who is the scheme for?
The scheme is open to first time buyers and existing homeowners, and helps you with up to 15% of the purchase price of a new build home.
The Help to Buy (Scotland) Affordable New Build Scheme is a Scottish Government scheme to help first time buyers and existing homeowners to buy an affordable new build home from a participating home builder. The three year scheme will operate until 31 March 2019. This means that all transactions must be concluded by this date and no transactions can conclude past it. The scheme is open to first time buyers and existing homeowners and provides help of up to 15% of the purchase price of an affordable new build home. Applications to the scheme should not be submitted more than 9 months from the date of expected settlement of your purchase of your new home.
In all cases, you will be expected to maximise your contribution to a reasonably affordable level. Your mortgage lender is likely to require that you provide a deposit of around 5% of the full purchase price of a new build home and this amount together with your mortgage must cover a combined minimum of 85% of the total purchase price. Typically, your mortgage will be based on a multiple of up to 4.5 times your household income for a single person and up to 3.5 times for a couple.
The agent assessing your application will work to a guideline to ensure that your monthly costs are no more than 45% of your net disposable income. You should be aware that if your monthly costs are more than 45% of your net disposable income, your application to the scheme will not be eligible.
If your application to the scheme is eligible, the agent will inform you what percentage of the property you will be expected to buy. You cannot choose to take a lower mortgage if your affordable income multiple suggests that you can afford and maintain a higher one. This is because the Scottish Government wishes to assist you by giving you the help that you need to buy a new home but not more than that. If you are required to provide a deposit to your lender then you may not use the equity stake funded by Scottish Ministers in this regard.
The Help to Buy (Scotland) Affordable New Build Scheme is open to both first time buyers and existing homeowners seeking to buy a new build home from a participating home builder.
For more information, speak to one of our Mortgage Consultants who will be happy to discuss the different options with you and go through your application in more detail.
Contact your local branch, call 0141 638 7083 or email firstname.lastname@example.org
Terms & Conditions apply. Mortgage availability depends upon your circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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