First Homes Fund

The Scottish Government’s First Homes Fund helps first-time buyers with up to £10,000 towards an existing or new-build home costing no more than £300,000.  

Buyers receive an equity loan with no ongoing repayments, they own their property outright and the Scottish Government holds a percentage equity stake.  

For example, a £10,000 equity loan on a £100,000 property gives the Scottish Government a 10% equity stake. Buyers return the same % when selling or if opting to increase their stake in the future.  

Who is eligible?

First-time buyers only: they must not own or have previously owned a dwelling in Scotland, the rest of the UK, or the rest of the world.  

For joint applicants, only one needs to be a first-time buyer, provided they do not own a property at the point of completing a purchase through this scheme.  

Cash buyers are excluded, as a capital repayment mortgage of at least 25% of the property value is needed.  

All applicants must live in the property as their main home and cannot let it out. 

Link will check applicants’ monthly mortgage and debt repayments are no more than 45% of their net disposable income. See the Sustainability Calculator for details.

How do I apply?

Before you or your Independent Financial Adviser or mortgage adviser applies on your behalf, you’ll need: 

  • Details of your solicitor
  • A Mortgage Decision In Principle
  • For open market sales, a copy of the Home Report. For off-market sales, a Scheme 1 valuation is needed. For new-builds, the valuation is either part of the mortgage offer, or a separate valuation report will need to be provided to the lender.  
  • For new-builds, a copy of the Reservation Agreement.
  • Income is evidenced by 3 months’ payslips for all applicants or an SA302 if self-employed, plus any benefit award letters. The application form gathers evidence that your mortgage and debt repayments will not exceed 45% of your net income. Please see the Sustainability Calculator for details. 

If you're ready to apply, click below to submit an application.

Apply Online

A step-by-step guide to the process

1. Talk to an Independent Financial Advisor or mortgage adviser about your mortgage suitability and whether the First Homes Fund may be suitable. See the Buyers' Guide for more information.  

2. Reserve a new-build or have an offer verbally accepted on an existing home.  

3. Apply online (an IFA or mortgage adviser can do this on your behalf). You’ll need details of your solicitor, a Mortgage Decision In Principle, evidence showing your mortgage and debt repayments will not exceed 45% of your net income, and, for open market sales, a copy of the Home Report. For new-builds, a signed reservation agreement is needed and for private sales, a Scheme 1 Valuation. Income is evidenced by 3 months’ payslips for all applicants or an SA302 if self-employed, plus any benefit award letters.  

4. If accepted, your Award Letter explains to you and your solicitor how to pay the £650 Buyer Fee (refundable if the sale doesn’t go ahead), and that funding is conditional upon missives concluding within 3 months and the sale completing within 6 months thereafter.  

5. Finalise your mortgage. For new build sales or off-market transactions requiring no Home Report, the valuation is either part of the mortgage offer, or a separate valuation report will need to be provided to the lender.

6. Your solicitor will advise you and provide Link and the Scottish Government’s solicitor with your signed agreements.  

7. Link will claim the funding from the Scottish Government and pass it to your solicitor. Your solicitor will also receive the funds from your lender to allow the sale to complete. Any joint applicant who owns a home must have sold it by completion.  

8. Congratulations, you have bought your first home. The Post Sales Information for Buyers explains your obligations after buying. 

How is the Scottish Government's equity stake calculated?

The Scottish Government’s equity stake is calculated as a % of the purchase price or valuation, whichever is lowest. 

What standard must properties meet?

Properties purchased with First Homes Fund assistance must meet the Tolerable Standard.

What is the buyer's fee and is it refundable?

The £650 buyer’s fee is paid after approval. Details of how to pay are on the Award Letter.

Fees are refundable if the sale does not conclude, except in cases where there has been misrepresentation or fraud by applicants. 

Are builder incentives allowed?

There are no restrictions on builder incentives for new-build purchases and assisted purchase is allowed.

Part exchange is not allowed. 

What lenders are participating?

Please refer to the Scottish Government's website for an up-to-date list of the participating lenders: this may change over time. 

What if buyers want to sell, remortgage or increase their equity stake?

Properties are sold as normal after contacting the After Sales Service. Check the After Sales Post Sales Information for Buyers for details. All administrative and legal fees are paid for by the buyer. 

As an example of a scenario where the value rises:

Valuation and Purchase Price: £100,000 
Scottish Government contribution: £10,000 (10%) 
Buyer sells in future on open market: £150,000 
Scottish Government receives: £15,000 (10%)