To meet our team and book a tour of our stunning show homes email email@example.com, visit our website or call 01224 900 142.
If you’re like many other first home buyers, taking that first step onto the property ladder can seem like an unattainable dream; no matter how hard you try to save for a deposit you never seem to have quite enough.
But a new initiative launched by the Scottish Government and supported by Bancon Homes can help you turn the dream of buying your own home into a reality. Whether you have your eye on a brand new house or you’ve fallen in love with a pre-owned one, the First Home Fund is set to help thousands of people in Scotland to buy their first property with the help of an interest free equity loan of up to £25,000*.
Bancon Homes has been building high quality homes for more than 30 years, and we know there’s no better feeling than moving into your own home, so we’re delighted to confirm that the First Home Fund applies to all of our current developments at Lochside of Leys, Banchory, Kinion Place, The Roses at Eden and Aspire House, Aberdeen and Aden Meadows in Mintlaw.
How do I know if I qualify?
To qualify you must be a first-time buyer who doesn’t own or have previously owned a property in Scotland or anywhere else in the world. If you’re applying for a joint mortgage though, it’s worth noting only one applicant needs to be a first-time buyer to qualify for the scheme, provided none of the joint applicants still owns another property by the time you’re ready to complete of the purchase of your new home together.
The First Home Fund also sets out a number of requirements regarding your mortgage. First of all, you must take out a mortgage. You can’t apply if you’re a cash buyer. You’ll also have to provide a minimum deposit of around 5% (subject to individual lender requirements) and your mortgage must be at least 25% of the purchase price. There is no price cap on the cost of your new home.
How does the scheme work?
The First Home Fund is a shared equity scheme between the Scottish Government and the buyer. What this means is that you split the cost of purchase. You fund your share through your deposit and mortgage with the remaining share being provided by the Scottish Government.
The maximum amount they’ll put in is £25,000* which can’t be more than 49% of the valuation or property price. The Scottish Government will not have any ownership rights to your home. You’ll own it outright and hold the full title deeds.
How do I pay it back?
The reassuring thing is that there’s no set deadline for repayment. You’d normally repay the government’s percentage equity share when you sell your home. In the interim, you don’t have to make any monthly payments to the Scottish Government, and you won’t be charged interest on the amount it contributes.
If, for example, your deposit and mortgage account for 85% of the property, the Scottish Government holds the remaining 15% share. When you decide to sell your home you will receive 85% of the sale price and the government receives 15%. You also have the option to increase your equity share to pay off the government’s share sooner.
Some other things you need to be aware of
It’s important that you get independent financial advice. Bancon Homes can help with this by provide you with a free consultation with a mortgage adviser who is a specialist in new build mortgage funding. They have access to thousands of mortgage products across the market and will guide you through the whole process, advising and arranging the most competitive mortgage in your circumstances.
Bancon Homes will also be there to support you every step of the way, to ensure the buying process is smooth and seamless, helping you fulfil your dream of buying that ideal first home.
Visit our First Home Fund page find out more.
*Terms and conditions apply