Can you use the help to buy Scotland for old homes?
No, you can’t use the help to buy Scotland for old homes. To be eligible for the help to buy Scotland the home has to be a new build home.
Is help to buy Scotland only for new builds?
Yes, the government will give you a 15% help to buy Scotland equity loan which can only be used if you are purchasing a new build home.
What is the Help to buy Scotland?
The Help to buy Scotland is a Scottish government first-time buyer scheme aimed at helping more first-time buyers get and home movers on the property ladder quicker or move homes.
The help to buy Scotland is only eligible for new build homes.
The scheme will end in March 2021.
The Help to Buy Scotland is made of up two schemes which are:
The Affordable New Build Scheme: The affordable new build scheme is only available to larger homebuilders.
The Smaller Developers New Build Scheme: This scheme is for smaller home builders and is available through selected builders.
When you make an application to buy through the help to buy Scotland scheme the agent in charge will check to see which scheme your application will fall under.
To be eligible for the Affordable new build scheme and the smaller developers new build scheme you will need to:
- Have a 5% mortgage deposit
- Get a mortgage for 80% of the property price excluding your mortgage deposit
- The mortgage you get alongside the Help to buy Scotland must be at least 25% of the properties value and must be a repayment mortgage.
- You must be unable to purchase the property without the help to buy Scotland scheme
- If you are single your, the mortgage must not be more than 4.5 times your income
- If you are a couple the mortgage must not be more than 3.5 times your combined income.
- The help to buy Scotland cannot be used on old homes, it can only be used on new build homes.
- The maximum threshold for the value of the property depends on what year your application is completed:
2018/19 (completed on or before 31 March 2019) £200,000.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.