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.