Which? uses cookies to improve our sites and by continuing you agree to our cookies policy.

Help to Buy

Help to Buy Scotland

By Marie Kemplay

Article 6 of 8

Put us to the test

Our Test Labs compare features and prices on a range of products. Try Which? to unlock our reviews. You'll instantly be able to compare our test scores, so you can make sure you don't get stuck with a Don't Buy.

Help to Buy Scotland

Help to Buy (Scotland) allows first-time buyers and home movers to buy new-build homes with deposits of just 5%. Find out how the scheme works with our expert guide.

The latest version of the Help to Buy (Scotland) scheme was launched in March 2016, with the aim of helping 7,500 home buyers over its three-year lifespan.

How does Help to Buy (Scotland) work?

The Help to Buy (Scotland): Affordable New Build Scheme, to give it its full name, offers interest-free equity loans of up to 15% of the value of a new-build home.

To use Help to Buy (Scotland), you'll need a deposit of at least 5%, and your combined mortgage and deposit will need to cover at least 85% of the total price of your desired property. 

If you have a much larger deposit, you might not be eligible, as the mortgage you take out must make up at least 25% of the total purchase price.

  • Mortgages for Help to Buy (Scotland) are only available from a few lenders. For independent, unbiased advice on getting a mortgage with this scheme, and guidance on the lenders who will be able to help, call Which? Mortgage Advisers on 0808 252 7987 for a free consultation.

What kind of home can I buy using Help to Buy (Scotland)?

You can only use this scheme to buy a new-build home.

The maximum value of the property you can buy changes each financial year, and if your application straddles two years, the limit applies to the date the transaction is completed, not the date the home is reserved. The limits are as follows:

  • before 31 March 2017: £230,000
  • before 31 March 2018: £200,000
  • before 31 March 2019: £175,000.

A home purchased using Help to Buy (Scotland) must be used as your main residence, so if you're looking for a buy-to-let investment, this scheme won't be right for you.

How do I apply for Help to Buy (Scotland)?

To buy a home using Help to Buy (Scotland), you'll need to follow these steps:

  1. Get an accurate understanding of how much you can afford, ideally by talking to a mortgage adviser.
  2. Contact a participating house builder and view a show home.
  3. Speak to an independent financial adviser, who will put you in touch with one of the agents that administers the scheme.
  4. Request a Help to Buy (Scotland) application form from the agent.
  5. Reserve a property and obtain a reservation agreement.
  6. Submit the application form to the agent and await a decision.

Find out more: new-build homes – expert advice on buying a brand-new property

When will I need to pay back my Help to Buy (Scotland) equity loan?

There's no set deadline but, while you're paying it off, you will be limited in what you can do with your property.

There are strict rules about improving or extending homes bought using Help to Buy (Scotland), so if you wish to carry out any work, you'll need to receive written permission. 

As the scheme is designed to help homebuyers get on to (or progress up) the ladder, the government is generally reluctant to allow changes that will increase the value of the property, so there's a good chance your request will be denied.  

Can I increase my share?

You can increase your share of the home by buying up 'chunks' of the government's stake. This process is often referred to as 'tranching up'.

You can buy a minimum of 5% in any one year, but bear in mind you'll be buying the equity at market rate, so you'll need to get a valuation done before purchasing.

Are there any alternatives to Help to Buy (Scotland)?

If Help to Buy isn't right for you, you could consider buying a home using the Scottish government's Low Cost Initiative for First-Time Buyers (LIFT) scheme, which is split in to two parts. 

The Open Market Shared Equity scheme (OMSE) allows first-time buyers to purchase a stake of between 60% and 90% of a property for sale on the open market with a modest deposit. 

The New Supply Shared Equity scheme (NSSE) works in a similar way, although it's limited to new homes and buyers will usually purchase a stake of between 60% and 80%.

Priority is usually given to social renters, members of the armed forces and disabled people.

If you're interested in buying a home using NSSE, you can search for a project in your area on the Scottish government website.

  • Last Updated: January 2017
  • Updated by: Stephen Maunder

Your home may be repossessed if you do not keep up repayments on your mortgage.

Which? Limited (registered in England and Wales number 00677665) is an Introducer Appointed Representative of Which? Financial Services Limited (registered in England and Wales number 07239342). Which? Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited. Registered office: 2 Marylebone Road, London NW1 4DF.