As of October 2026 the main Scottish scheme is the First Homes Fund, which opened for applications on 24 June 2026. It offers a shared equity contribution of up to £10,000 towards a home valued at up to £300,000 and is open only to first-time buyers using a mortgage. The Scottish Government's homeowners page also lists the LIFT shared equity schemes for lower and moderate incomes. Help to Buy (Scotland) is closed and is not coming back.
The First Homes Fund
The Scottish Government describes the fund as a £500 million scheme expected to support around 50,000 households over the Parliament, with up to 2,000 households supported in the first phase. Money is released in phases (£100 million a year over five years, according to trade press), so funding can run out before you apply. Check the current position on mygov.scot before you rely on it.
| Rule | Detail from the Scottish Government |
|---|---|
| Who can apply | First-time buyers: never owned a dwelling in Scotland, the rest of the UK or anywhere else. With joint buyers only one needs to be a first-time buyer, and none may own a property at completion |
| Property | New-build or existing, up to £300,000, above the tolerable standard |
| How it works | A shared equity loan of up to £10,000, held as a percentage stake of at most 49% of the price or valuation, with no interest charged |
| Mortgage | Capital repayment, with a minimum mortgage of 25% of the purchase price; cash buyers are not eligible |
| Use of the home | Must be your main residence; letting, lodgers and sharing are not allowed |
| Fee | £650 administration fee, set out in the award letter |
| Timing | Apply after your offer is accepted. Approval is valid for three months to conclude missives, and settlement must happen within six months after that |
The stake is repaid on sale, and also on death or if you breach the terms. Borrowing more against the home for improvements needs the Scottish Ministers' consent. Existing homes need a Home Report; see the Home Report explained.
LIFT shared equity
The Scottish Government's homeowners page lists the Low-cost Initiative for First Time Buyers (LIFT) as open. It includes Open Market Shared Equity, for buying on the open market, and New Supply Shared Equity, for new-build homes from councils or housing associations. These are aimed at lower and moderate incomes and have their own eligibility tests and limits. The page also carried a note about the First Homes Fund being closed that conflicts with the June 2026 announcement, so confirm each scheme's status directly with the Scottish Government on mygov.scot.
UK-wide help
- LBTT first-time buyer relief raises the 0% band to £175,000; see LBTT rates and first-time buyer relief.
- Lifetime ISA: the UK government has said a new first-time buyer ISA will be offered in place of the Lifetime ISA once available. Until then check gov.uk for the current rules before you save.
- Gifted deposits from family are accepted by many lenders, usually with a signed letter confirming the money is a gift.
Shared equity schemes reduce the deposit you need; they do not replace lender approval. Lenders set their own criteria and not all take part. Speak to a lender or authorised broker early; see first-time buyer mortgages in Scotland.
How the stake works in practice
The Scottish Government's stake is expressed as a percentage of the price or valuation, so what you repay depends on what the home is worth when you sell. As an illustration only, a £10,000 contribution towards a £200,000 home is a 5% stake. If the home later sells for £240,000, a 5% stake would be £12,000. No interest is charged, but the repayment grows if prices rise and shrinks if they fall. Check the legal terms in your award letter before you accept.
Questions to ask before applying
- Does my chosen lender accept this scheme, and does it set a minimum stake?
- Is my property within the £300,000 cap, and will its valuation be at or above the price?
- Can I afford the mortgage on a capital repayment basis?
- Have I allowed for the £650 fee and the usual costs in the costs of buying a home in Scotland?
- Will my solicitor be able to conclude missives within the three-month approval window?
Because funds are released in phases and applications can only follow an accepted offer, schemes reward preparation. Line up your decision in principle, solicitor and deposit before you start viewing.
Do not pay a reservation or other non-refundable cost on a home that depends on scheme approval without understanding the risk. The scheme only supports a purchase once your offer has been accepted, so ask your solicitor how the timetable fits with any deadlines in the missives.
This is general information, not financial advice. Scheme rules and funding can change, so check mygov.scot before you commit.
Frequently asked questions
How much does the First Homes Fund give?
Up to £10,000 as a shared equity stake, for homes valued at up to £300,000. An administration fee of £650 applies.
Can I use it for a second-hand home?
Yes. New-build and existing homes are both eligible if they meet the tolerable standard and you live there as your main home.
Is Help to Buy Scotland still open?
No. The Scottish Government says those schemes are closed and will not reopen.
When should I apply?
After your offer is accepted. Approval is valid for three months to conclude missives, so line up your solicitor and lender first.