First-time buyers and people on low to medium incomes are being encouraged to take advantage of a discount scheme to help them buy a home in 2023. The Open Market Shared Equity Scheme allows people to buy a home without having to fund its entire cost and is available across Scotland to those buying their first property and people in a priority access group.
This includes those buying their first home, as well as buyers aged 60 and over, people living in either council or housing association properties, disabled people, members of the armed forces and those who have left the services within the last two years.
The bereaved partners of those in the forces who have died while in service in the last two years can also benefit from the scheme, which allows people to buy a share of a home - usually between 60% and 90% - with the Scottish Government then purchasing the remaining share.
The Scottish Government then receives a share of the money when any home purchased using the scheme is sold on at a later date.
Priority access groups to the Open Market Shared Equity scheme
The scheme is available across Scotland to these priority access groups:
- people aged 60 and over
- first time buyers
- social renters - people who rent from the council or a housing association
- disabled people
- members of the armed forces
- veterans who have left the armed forces within the past two years
- widows, widowers and other partners of service personnel for up to two years after their partner has lost their life while serving
Maximum price thresholds
You cannot buy a home for more than a certain 'maximum threshold' price.
There are different threshold prices across Scotland. So before you apply to buy through the scheme make sure the home falls under the threshold price for that area - full details can be found here.
How to apply
If you want to apply for the scheme you should read through this information leaflet first.
If you're eligible for the scheme contact the administering agent Link Homes - full details on mygov.scot website here.
There are currently 13 lenders offering mortgages for the Open Market Shared Equity scheme:
- Bank of Scotland
- Barclays
- Capital Credit Union
- Glasgow Credit Union
- Halifax
- Leeds
- Lloyds Bank
- Nationwide
- Natwest
- Scottish Building Society
- Skipton
- TSB
- Scotwest Credit Union
If your application is approved, you will get a 'passport letter' which says you can now look for a home under the scheme. The 'passport letter' will tell you the maximum price you can pay for a home. It will also tell you what your next steps should be.
Once you have found a home you like you will be asked to provide a copy of the valuation. This will usually be provided in the Home Report, which the home's seller will give you.
When you're ready to buy, you will need a solicitor to act on your behalf to assist you with buying the home. The Scottish Government has its own solicitor who will handle work involving its equity share.
You will then have to pay for your share of the home's price in the usual way, along with any other costs, such as legal costs, registration fees and any stamp duty.
More details about the scheme including what happens after your buy a home can be found on mygov.scot here.
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