First-time buyers across Scotland who cannot afford the full cost of a home can now apply for financial help through a Scottish Government scheme. Applications have opened for the Open Market Shared Equity Scheme (OMSE), which is designed to help people on low-to-moderate incomes buy a property on the open market.
The scheme is also available to priority groups who cannot afford the full price of a suitable home, including social renters, disabled people, those aged 60 and over, members of the armed forces, and veterans.
Under the shared equity scheme, buyers normally pay between 60 and 90 per cent of the cost of their home, with the Scottish Government holding the remaining equity stake. For example, if a buyer pays for 75 per cent of a property, the Scottish Government would hold the remaining 25 per cent share.
Eligibility and property price limits
The scheme is available across Scotland, although maximum property price thresholds apply depending on the size of the home and where it is located.
Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville said: “This Government is delivering on affordable housing and this scheme, along with our First Homes Fund, will provide a vital support for those looking to buy their first home.
“We know how hard it is to get that first foot on the property ladder - our shared equity schemes assist households who can sustain mortgage repayments but find it difficult to accumulate the necessary savings to secure a purchase.
“I encourage everyone who is eligible and looking to buy a home to apply to these schemes. Giving more people the chance to buy an affordable home also plays a crucial role in reducing homelessness and eradicating child poverty across the country.”
How the Open Market Shared Equity Scheme works
OMSE is intended for people who want to own a home but cannot afford the full purchase price without assistance. The amount of financial help available depends on individual circumstances, including how much someone can afford to contribute towards buying their home.
The Scottish Government holds an equity stake in the property rather than providing the buyer with a conventional loan. If the homeowner later sells the property, the Scottish Government will receive its percentage share of the sale price.
Buyers are responsible for the usual costs associated with owning a property, including mortgage payments, insurance, repairs and maintenance, Council Tax and household bills. There are also limits on the value of property that can be purchased through OMSE. These vary according to the area of Scotland and the number of bedrooms in the property.
People interested in applying can check their eligibility, current property price limits and how the scheme works on the Open Market Shared Equity Scheme pages on MYGOV.SCOT.
£10,000 help through First Homes Fund
The Scottish Government is also offering financial help to first-time buyers through its separate First Homes Fund. Introduced in June, the scheme offers a £10,000 contribution towards the purchase of a property for first-time buyers who may be able to afford mortgage repayments but are struggling to save enough for a full deposit.
The Scottish Government said the two schemes form part of its wider programme aimed at helping people access affordable housing. The First Homes Fund has its own eligibility and application rules. Full details are available on the First Homes Fund pages on MYGOV.SCOT.
