First Homes Fund – A Guide for First-Time Buyers

Buy your first home with support from the Scottish Government.

Saving for a deposit can be one of the biggest challenges facing first-time buyers in Scotland. The Scottish Government’s First Homes Fund has been introduced to help more people take their first step onto the property ladder by providing a contribution of up to £10,000 towards the purchase of their first home.

Whether you’re buying a new-build property or an existing home, the First Homes Fund could make home ownership more affordable by reducing the amount you need to borrow through your mortgage.ccg

At CCG Homes, we’re committed to helping first-time buyers understand the options available and how government-backed schemes can support their purchase of our new-build properties available at Dalmarnock Quarter and West Shore.

What is the First Homes Fund?

The First Homes Fund is a Scottish Government shared equity scheme designed to help eligible first-time buyers purchase a home in Scotland.

The scheme provides:

• Up to £10,000 towards your first home.
• Available on properties with a purchase price or Home Report value of up to £300,000.
• Available for both new-build and existing homes across Scotland.
• No monthly repayments or interest charges on the Scottish Government’s equity contribution.
• You own and live in your home as your main residence, while the Scottish Government retains a proportional equity stake until it is repaid or the property is sold.

Who can apply? You may be eligible if you:

• Have never owned a property anywhere in the world.
• Are buying a home to live in as your main residence. The fund cannot be used for a buy-to-let purchase.
• Can obtain a capital repayment mortgage covering at least 25% of the purchase price (or valuation, whichever is lower).
• If you’re buying with another person, only one applicant needs to be a first-time buyer, provided neither owns a property at the time of completion. Joint applicants receive one award of up to £10,000.

How does the First Homes Fund work?

Unlike a grant, the First Homes Fund is a shared equity scheme. The Scottish Government contributes up to £10,000 towards the purchase price in return for an equivalent percentage share of your property’s value.

Example:

• Property purchase price: £250,000
• First Homes Fund contribution: £10,000
• Scottish Government equity stake: 4%

When you eventually sell your home, or choose to buy back the government’s share, you repay the same percentage of the property’s value at that time.

How do I apply?

Applications are made through the Scottish Government’s First Homes Fund process.

The typical steps are:

• Speak to an independent mortgage adviser or financial adviser.
• Obtain a Mortgage Agreement in Principle.
• Choose a suitable property.
• Complete your First Homes Fund application.
• If approved, progress your purchase through your solicitor.
• Your financial adviser or mortgage adviser can often submit the application on your behalf.

FAQ’s