Help to Buy – The NEN – North Edinburgh News

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 To Buy homes scheme extended

Continued support for house-building industry and buyers

More than 2,000 households will be able to buy a new build home as the Help to Buy (Scotland) scheme is extended by a year to March 2022.

Supported by £55 million of funding for 2021/22, the extension will also help house-builders to ensure their economic recovery over the years ahead.

Housing Minister Kevin Stewart said: “A strong and growing house-building industry is vital to Scotland’s future economic prosperity – and particularly as we plan our strategic economic recovery from COVID-19.

“This extension will provide us with the opportunity to reassess future priorities for the market, taking account of economic conditions following the pandemic, as well as providing a helping hand to those seeking to buy their own home.

“Since 2013, the Help to Buy (Scotland) scheme has supported people with the purchase of over 17,000 new build homes and in particular supported young people aged 35 and under.

“Extending this scheme will help more people to buy a new-build property, particularly those who have suffered lower levels of income and have used up savings due to the impact of COVID-19 in recent months.”

The Help to Buy (Scotland) scheme focuses on more affordable housing with a maximum purchase price of £200,000 and with £15 million ring-fenced support for the purchase of homes sold by smaller developers, from a total budget of £55 million.

It bridges the gap between lower loan-to-value (LTV) mortgages now obtainable for new builds and the smaller deposits many households now have available to buy a new home.

Over the next two years the funding commitment for Help to Buy (Scotland) is:

2020-21 £50 million
2021-22 £55 million

79% of those supported by the scheme in 2018/19 were young people aged 35 and under.

An independent evaluation of the Scottish Government shared equity schemes, including Help to Buy has been published. This work was undertaken prior to the COVID-19 crisis.

Government extends Help to Buy scheme

The Help to Buy (Scotland) scheme will be extended beyond 2019, helping more people purchase a new-build home without the need for a large deposit. From April 2019, a further £100 million will be invested over two years, helping up to 4,000 households to purchase a new home. Continue reading Government extends Help to Buy scheme

Home sweet home: thousands benefit from Help to Buy

5000 sales valued at £1 billion – and 2500 more on the way

More than 5,000 families and first time buyers have purchased their home through the Help to Buy (Scotland) scheme, Housing Minister Margaret Burgess announced yesterday.

A further 2,500 sales are expected to be completed this year through this scheme and the Help to Buy (Scotland) Small Developers scheme.

Over £305 million was allocated to the two schemes – far exceeding the original industry demand for £220 million and target of 4,500 homes.

The value of the 5,000 properties sold under the scheme since November 2013 is now over £1 billion.

Help to Buy (Scotland) has been developed and delivered in partnership with Homes for Scotland and the Council of Mortgage Lenders, representing the industry and lenders. They continue to work with Ministers to monitor the schemes.

Mrs Burgess said: ““Housing is, and will remain, at the heart of the Government’s ambitions to deliver a fairer and more prosperous country.

“By investing £305 million in the Help to Buy (Scotland) scheme, £85 million more than the house building industry originally requested, we have also stimulated the economy, created jobs and given the construction industry a huge boost.

“The 5,000 sales achieved has far exceeded the industry’s original target of 4,500 homes. This has provided thousands of families, couples and single people, including first time buyers, the help to move up or onto the property ladder.”

The scheme has proved to be popular all across the country. Elgin couple Cameron & Magdalena McKenzie, who purchased a property through the Help to Buy Scheme, said: “Our family were delighted to use the help to buy scheme to assist us in getting a bigger and more modern property.

“We would never have been able to buy a bigger family home if it was not for Help to Buy. From start to finish, it was also very positive dealing with Bob Milton Properties.”

Bob Milton of house builder, Bob Milton Properties, said: “We were delighted to have sold another home with the assistance of the Help to Buy scheme. The scheme allowed Cameron and Magdalena to fulfil their dreams and move up to a new energy efficient home with their required number of bedrooms for their family needs.

“The people purchasing the plot next to Cameron and Magdalena’s had a son looking for a home. I put them in touch and the son, who was a first time buyer, bought Cameron and Magdalena’s home. Clearly, the Help to Buy scheme had a very positive link in allowing two sales to happen.”

Liz Mallon, Sales and Marketing Manager of City Legacy, the company responsible for marketing the Commonwealth Games Athletes’ Village properties, said: “The Commonwealth Games Athletes’ Village is a very special development which has really caught the imagination of buyers and bridges that much-needed gap for affordable living in Glasgow’s East End, just a few miles from the city centre.

“The support of the Scottish Government Help to Buy Scheme on this affordable quality private housing development has made a significant difference to the many first time buyers and families who have purchased their first new home in this unique historic housing development.”

Pete Bell, Chairman and Managing Director of Fife-based Campion Homes said: “We are not surprised this scheme has proved so popular. It allows first time buyers to get on the property ladder and shows just how important small and medium sized builders are to the house building industry in Scotland. We are delighted to be part of it.”

Help to Buy scheme launched

A £12billion scheme to help thousands of people buy a home of their own will be launched today (Tues 8 Oct) by the Prime Minister and Chancellor. David Cameron said Help to Buy will ‘turn the dream of home ownership a reality for many’.

High Street banks including Natwest, RBS, Halifax and Bank of Scotland will start offering new Help to Buy mortgages this week, and others are to follow: Virgin Money has also confirmed they will participate in the scheme, and will be offering new guaranteed mortgages to borrowers in the New Year. Aldermore Bank has confirmed that it is joining the scheme in January, and is exploring whether this date can be brought forward.

Natwest and RBS customers will be able to start the process of applying for a mortgage today, with other banks to follow in the next few days.

The Help to Buy: mortgage guarantee is aimed at thousands of people frozen out of the housing market because they cannot afford large deposits of up to 20 per cent of a property’s value.

It means someone trying to buy a £200,000 house currently needs to save up a deposit of £40,000.

Leading banks will offer a range of new Help to Buy mortgages – up to 95 per cent of the property’s value – for homes worth up to £600,000.

Under the scheme, buyers will only need a deposit of as little as 5 per cent.

Depending on the size of deposit, the government will then guarantee up to 15 per cent of the property’s value, in return for a fee from the lender.

There will be scheme advertisements in national newspapers from tomorrow, banks are braced for a flood of interest from the public.

The launch of the scheme has been brought forward by three months, as the details are finalised and lenders are in a position to start offering the mortgages.

Lenders can start offering the mortgages now, and they will be guaranteed by the government from January 2014. As it usually takes a few months for borrowers to go through the mortgage completion process, this delay is not a problem for lenders. If borrowers do complete before January their mortgage will be included in the scheme.

Prime Minister David Cameron said: “Too many hardworking people are finding it impossible to buy their own home – people who can afford the monthly mortgage payments but haven’t got rich parents and can’t pay the deposit up front.

“There is a need for Government to act. Buying your first home is about far more than four walls to sleep at night. It’s somewhere to put down roots and raise a family. It’s an investment for the future. Above all, it’s a sign that everything you’ve put in has been worth it.

“Our Help to Buy Equity Loans, have already helped over 15000 people buy a new home. But we’ve got to go further and finish the job we’ve started. So from today, thousands of people will be able to get a foot on the housing ladder by applying for the new Help to Buy mortgage guarantee. If you’ve got 5 per cent of the funds for a mortgage deposit, we’re providing a guarantee to the banks to help you get the rest.

“Help to Buy is going to make the dream of home ownership a reality for many who would otherwise have been shut out. This goes right to the heart of my vision for Britain – a country where everyone who works hard can get on in life. Moves such as Help to Buy will also encourage housebuilding. If potential buyers can’t buy, builders won’t build – so this is an important part of unlocking the market.”

The Chancellor of the Exchequer, George Osborne added: “Through Help to Buy: mortgage guarantee I want to help those families that have saved for years, earn decent salaries, but cannot afford the deposits currently being asked for by the banks. I want young people to have the same chance of getting on the property ladder as their parents and grandparents.

“Too many people are still being denied the dream of owning their own home, which is why we have brought forward the launch of this scheme, so as of today borrowers can start applying for a mortgage with a five per cent deposit.”