First Home Fund – The NEN – North Edinburgh News

Get a foot on the Edinburgh property ladder with the First Home Fund

The Help to Buy Scotland scheme may be discontinued, but this doesn’t mean first-time buyers are being left out in the cold. Barratt Homes is reassuring prospective homeowners that there is other help available for getting on the property ladder.

The First Home Fund is an alternative shared equity scheme offered by the Scottish Government that provides up to £25,000 to all first-time buyers towards the purchase of a home – great news for anyone hoping to make the move this year.

The property market can be challenging to navigate, particularly for those doing so for the first time, so Barratt Homes is reducing this stress by addressing some commonly asked questions and reassuring that the door to owning a property is still very much open.

Anne Ross, sales director for Barratt Homes East Scotland said: “We’re here to make the process of buying a dream home as easy as possible, and this includes sharing useful information about the funding options available.

“While the Help to Buy Scheme is discontinued, we’re here to remind people that the First Home Fund is available and that the journey to owning a home doesn’t have to stall.”

If the virus has shown us anything it’s that a comfortable home plays a big role in wellbeing. A new home is a decision not to be taken lightly – and considerations like flexible living spaces, travel connections and the surrounding area have taken on new meaning during the pandemic.

If you’re looking to buy in Edinburgh using the First Home Fund, Barratt Homes’ Mayburn Walk (below) offers a variety of three and four-bedroom homes in Loanhead, to the south of Edinburgh.

With quick access to the Edinburgh bypass, park and ride options and regular bus services, Mayburn Walk offers the chance to own a house and private garden without having to compromise on location.

A stone’s throw from the Pentland Hills, downtime can be spent exploring some of Scotland’s finest hillwalking trails, all within the local area.

Flexible living

We’re spending more time in our homes, and they really have become our sanctuaries. Every design decision made by Barratt has been carefully considered to get the most out of the space. Homes such as the three-bedroom Coull include open plan kitchen/dining spaces with direct garden access, separate lounge space and bright and open rooms that flood with natural light. Ideal for first time buyers, the third single bedroom can be transformed into a private work space, fitness area or hobby room.

Also available are homes in the stylish Bonnyton and Wemyss styles, which include ample storage and utility cupboards, two double bedrooms, a family bathroom and private gardens.

The numbers

Homes at Mayburn Walk are available through the First Home Fund – perfect for a professional couple looking to make their first move together in a house that will grow with them. You can buy with a 5% deposit, 75% mortgage and 20% interest-free equity government loan.

Prices start at £235,995, so your costs could look a bit like this:

Property price:	£235,995
Buyer depositMortgage	£11,800£199,195
Scottish Government loan:	£25,000

Barratt Homes’ First Home Fund Facts

When can I apply?

The First Home Fund shared equity scheme will re-open for applications on 1 April 2021 and run until 31 March 2022. The most awarded under the scheme to purchase a property is £25,000 but the Government will not charge any interest. Barratt Homes is currently taking reservations for homes under the First Home Fund scheme at Mayburn Walk.

I want to apply but where can I get professional advice?

We always recommend speaking to an independent financial advisor to help you navigate the market and ensure you’re getting the best mortgage deal for you. They’ll help you with your First Home Fund application.

Barratt’s expert sales advisors are on hand to help you choose a property that’s perfect for you, and can direct you to financial advisors in your community to guide you through the purchase.

How much of a deposit do I need?

You’ll typically need just 5% of the value of the property as a minimum, subject to lender requirements.

What other terms to I need to consider?

You’ll need to have secured a minimum mortgage of 25% of the property purchase price. In addition to this, the equity stake from the Scottish Government must not be more than 49% of the property value.

Is there a property price cap?

Unlike the Help to Buy Scheme, there is no cap on the property price, but of course buyers must ensure their ownership is sustainable and affordable for the long term.

For more information on Barratt Homes at Mayburn Walk, or for more advice on the First Home Fund, please visit the website.

First Home Fund pilot success

First-time buyers have less than a week to apply for the pilot First Home Fund, which has helped thousands to enter the property market.

The new scheme has been particularly popular since the housing market reopened in June, and is expected to support more than 8,000 households into home ownership by the end of the financial year.

Homebuyers who are completing purchases this financial year have until 6pm on 2 October to apply.

The fund, which offers first-time buyers loans of up to £25,000 for their deposit, was launched in December 2019 to pilot a new approach to supporting first-time buyers. The pilot will now be evaluated, with the results expected to be published in January.

However, recognising its early success, the Scottish Government intends to reopen for applications in the new year for home purchases completing in 2021/22.

Housing Minister Kevin Stewart said: “The pilot of our First Home Fund has been a huge success, helping thousands of people own their first home.

“The fund has been especially important since property sales resumed over the summer, and we invested a further £50 million in July to help ensure that first-time buyers could still access the market despite changes to mortgages caused by the coronavirus (COVID-19) pandemic.

“While the scheme is almost fully subscribed for 2020-21, I am pleased to say that I will reopen the pilot for the next financial year, and look forward to announcing further details of this in due course.

“In the meantime, first-time buyers will still be able to access shared equity schemes including Help to Buy (Scotland) and LIFT (the Low-cost Initiative for First Time Buyers), and I would encourage them to consider these options.”

Cameron McKenzie, who bought a two-bedroom flat in Pilton through the fund, said: “Thanks to the First Home Fund we bought our first home far earlier than we ever imagined, especially during these uncertain times! The application process was easy to understand and Link staff were very helpful.”

The First Home Fund was launched with an initial budget of £150 million. The Scottish Government invested a further £50 million in July in response to reduced availability of higher loan-to-value mortgages caused by the COVID-19 crisis.

Help for homebuyers

Finance Secretary announces measures to boost the economy.

New initiatives to support homebuyers and help people into work or to re-train have been announced by Finance Secretary Kate Forbes.

The measures are part of the Scottish Government’s wider efforts to help the economy recover from the impact of coronavirus (COVID-19) and are expected to involve an investment of around £200m.

The threshold at which Land and Buildings Transaction Tax (LBTT) is paid will be raised from £145,000 to £250,000, meaning 80% of house buyers will be exempt from the charge – excluding the Additional Dwelling Supplement. Home movers purchasing a property costing more than £250,000 will save £2,100.

In addition, an extra £50m is being added to the First Home Fund, a shared equity scheme providing first time buyers with up to £25,000 to buy a property. This will support an estimated 2,000 first time purchases and increase the total funding to £200m.

A further £100m is being invested in targeted employment support and training. Economy Secretary Fiona Hyslop will set out further details on this employment funding in due course.

Ms Forbes announced the initiatives as part of a statement following spending announcements by the Chancellor of the Exchequer.

The Finance Secretary said: “Regrettably the Chancellor’s statement is a missed opportunity for Scotland. While I support certain measures, such as the reduced VAT for tourism and hospitality, which I had already called for, much of the rest falls well short of delivering what is needed to boost the economy and protect jobs.

“The Chancellor’s economic measures outlined in the statement only generate an additional £21m for the Scottish Government’s budget, limiting our ability to tailor a Scottish approach to regenerating our economy.

“Nevertheless, I can confirm several important new steps we will take.

“I have listened to calls to raise the starting threshold for LBTT to help stimulate housing market activity and the economy. Today’s changes will benefit house buyers and are focused directly on the particular needs of the Scottish economy.

“To ensure first time buyers can also benefit, I will provide an additional £50m this financial year to directly support them to get on the property ladder.

“On employment, the Chancellor’s announcement included UK-wide schemes that will apply in Scotland, but I believe more is required to support the labour market.

“We will therefore make an additional £100m available this year for targeted employment support and training. I recognise that we still need to do more to support employment and skills, but this is a step in the right direction.”

The change to LBTT will come into force as soon as possible, allowing time for legislation to be prepared and for Revenue Scotland to be ready to collect and manage the tax.

The rates for the Additional Dwelling Supplement and non-residential LBTT remain unchanged.

These latest initiatives will be part funded by money expected to be received by the Scottish Government following the UK Government’s decision to raise the threshold at which Stamp Duty Land Tax is paid on house purchases and from the Scottish Government’s financial transactions budget.

Full details of the LBTT changes.