Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Scottish Government Launches Interest-Free Loan Scheme for First-Time Buyers
The Scottish Government has set up a new shared-equity scheme offering interest-free loans worth £10,000 to first-time buyers. The First Homes Fund will be available to those purchasing new-build or older properties valued up to £300,000.
The scheme is designed to help first-time buyers with their deposits. The first phase is expected to support 2,000 households from next month, with a target of assisting 50,000 households during the course of the new Parliament in Scotland.
Under the scheme, the Scottish Government will hold an equity share in the property, but the homeowner will own and have title to the property. There are no monthly payments required and no interest will be charged on the loan. The government’s equity share is typically repaid when the home is sold.
The First Homes Fund is part of a broader programme supported by a £4.9 billion investment in affordable housing over the next four years.
Letting agents and inventory clerks operating in Scotland may see increased activity from first-time buyers entering the market as a result of this initiative.
Source: The Negotiator