How does Help to Buy (Scotland) Work and conditions of the scheme?
- You could purchase a new home with a 5% deposit.
- Help to Buy simply means people can purchase a new build property without the need for a large deposit
- The Scheme is open to the Help to Buy affordable new build scheme
- The threshold price for Help to Buy is £200,000
- The scheme is available to help first-time buyers and existing homeowners
- Applications for help to buy cannot be submitted more than nine months before the expected completion date.
- The equity is interest-free.
- Buyers should only submit a full mortgage application after an authority to proceed letter has been issued by the agent administrating the scheme.
- You must take out at least a 25% mortgage.
- A single person will not be eligible if he or she requires a mortgage of more than 4.5 times income or couples 3.5 times joint income.
- Must be your only property
- A mortgage lender is likely to require a deposit of around 5% and the mortgage and deposit must cover a combined minimum of 85% of the total home's purchase price.
- Buyers cannot use interest-only mortgages and the maximum is 15% of the purchase price.
- Guidelines advise that monthly costs are no more than 45% of your net disposable income.
