By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.

Help to Buy (Scotland) scheme launches

Government to offer equity loans to buyers with 5% deposits
Stephen Maunder

Help to Buy (Scotland) aims to assist 7,500 home buyers over the next three years

The revamped Help to Buy (Scotland) scheme launches today, providing interest-free equity loans to first-time buyers and home movers.

The scheme works slightly differently to its predecessor, which helped 7,000 home buyers between 2013-2015. Here's everything you need to know.

How does Help to Buy (Scotland) work?

The Help to Buy (Scotland): Affordable Home Ownership Scheme (to use its full name) offers loans of up to 15% of the purchase price of a new-build home.

You'll need to have saved up 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.

Under the terms of the new scheme, the maximum price you can spend on a property changes each year.

If you buy a house before 31 March 2017, you can spend up to a total of £230,000. This limit then reduces to £200,000 until 31 March 2018, and then £175,000 until 31 March 2019, when the scheme will close.

The maximum price limit applies for the date that the transaction is completed, not the date the property is reserved.

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

Mortgages for Help to Buy (Scotland) are only available from participating lenders, and so far seven have signed up. These are:

  • Barclays
  • Glasgow Credit Union
  • Leeds Building Society
  • Lloyds Banking Group
  • Nationwide
  • Skipton Building Society
  • Virgin Money.

Affordability for mortgages will be means-tested at the level of 3.5 times your joint annual income if you're buying with a partner, or 4.5 times your annual income if you're buying alone.

To use Help to Buy (Scotland), you'll need to follow these steps:

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

If you're still saving for a deposit using a Help to Buy Isa, your savings and government bonus can be put towards a Help to Buy (Scotland) purchase.

Find out more:Help to Buy (Scotland)- check out our full guide

Help to Buy (Scotland) equity loans: what else do I need to know?

There's no set deadline for when you must repay your equity loan, and it's possible to purchase additional equity if you wish. This process is often referred to as 'tranching up'.

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

There are also some restrictions on how you can use a property bought using a Help to Buy (Scotland) equity loan.

Firstly, you'll need to be using the home as your main residence. This means you can't purchase the property as a buy-to-let investment, and part-exchange isn't available.

You will also need written permission to make any changes or improvements to the property while you're still paying back the government's share.

More on this...

Related articles

About Us

Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665  and is an Introducer Appointed Representative (FRN 610689) of the following:


1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance, who are authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 


2. LifeSearch Partners Limited (FRN656479), for the introduction of Pure Protection Contracts and Private Health Insurance, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts and Private Health Insurance Contracts.  LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386.


3. HUB Financial Solutions, for the introduction of equity release advice and an annuity comparison service, who are authorised and regulated by the Financial Conduct Authority (‘FCA’) to provide advice and guidance on financial products for those who have retired or are approaching retirement (FCA Firm Reference Number: 455713). HUB Financial Solutions is registered in England and Wales to Enterprise House, Bancroft Road, Reigate, Surrey RH12 7RP, company number 05125701.


4. Alan Boswell Insurance Brokers Ltd (FRN 301), for the introduction of non-investment landlord insurances, who are authorised and regulated by the Financial Conduct Authority to provide advice and arrange insurance contracts. Alan Boswell insurance brokers Ltd is registered in England at Prospect House, Rouen Rd, Norwich NR1 1RE, company number 02591252.


Other financial services:

Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.


We do not make, nor do we seek to make, any recommendations or personalised advice on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners. 


If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer. Please note that a link alone does not constitute an endorsement by Which?.