A new Help to Buy scheme has launched, providing interest-free equity loans to first-time buyers and people moving home in Scotland.
The Affordable Home Ownership scheme could provide loans of up to 15% on the purchase price of a new home.
Buyers will need a deposit of at least 5% and a mortgage that covers at least another 80%.
The new scheme also introduces price changes on properties each year until the scheme closes.
For example if you purchase a home before 31 March 2017, you can spend the maximum price of £230,000. The limit then reduces to £200,000 until 2018 and to £175,000 until 2019 (end of scheme).
Mortgages will also be means-tested under the new scheme, at the level of 3.5 times your joint income for those buying with a partner or 4.5 times if you’re purchasing alone.
To apply for Help to Buy Scheme, follow these steps:
- contact a participating house builder and view a property
- speak to a financial adviser/agent that administers the scheme
- request an application from the agent
- reserve a property and obtain a reservation agreement
- submit application to agent.
Contact us today to find out more on Help to Buy schemes.
This material is for informational purposes only and should not be relied upon as professional advice.
