Bancon Homes buyers hoping to take advantage of the First Home Fund have been given a deadline by the Scottish Government to get their applications in by Friday 2nd October. Following the significant number of applications received in recent weeks, the Scottish Government has advised that the 2020-21 scheme is almost fully subscribed. As a result, new applications will only be accepted until 6pm next Friday.
Saving the deposit for your first home can seem like an impossible task where the goal posts keep moving from year to year and your deposit always seems too small to get your first foot on the property ladder. Bancon Homes in conjunction with the Scottish Government’s The First Home Fund is here to help you make that dream into a reality.
The First Home Fund scheme will provide First Time Buyers with an interest free loan of up to £25,000 to help you buy the property the property of your dreams in the place you love. It doesn’t have to be a brand new home, you can use the scheme to purchase a pre-loved home too.
The scheme is open to First Time Buyers in Scotland who are taking out a mortgage. You will not be able to apply for the scheme if you are a cash buyer or if you have previously owned a property in the UK or abroad at any time, whether as a sole or joint owner. However, if a spouse or partner has never previously owned a property in Scotland or elsewhere in the world, you would be eligible to apply for the First Home Fund.
In order to take part in the scheme you will be required to provide a minimum deposit of 5% (subject to your lender’s requirements) and your mortgage must be at least 25% of the purchase price. The maximum contribution from the Scottish Government is £25,000 or 49% of the property valuation figure or the purchase price (whichever is lower). If you purchase a property for less than the valuation figure then the maximum Scottish Government contribution is £25,000 or 49% of the purchase price.
Although the Scottish Government will have an equity share in the property, you will own the property outright. There are no monthly payments to be made towards the Scottish Government and no interest will be charged.
Bancon Homes will provide you with access to a free impartial mortgage adviser to help you ensure your purchase is sustainable and guide you through the whole process of applying for your First Home Fund. The adviser will help you find the best mortgage. Bancon Homes will be there every step of the way to endure the process is smooth and seamless.
Land and Buildings Transaction Tax may be applicable on properties over £175,000. You may qualify for first-time buyer relief on Land and Buildings Transaction Tax, your mortgage adviser will be able to tell you more.
Contact Bancon Homes on 01224 900142 for more details and your referral to our free Independent Financial Advisor.
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