SCOTS who want to “unlock the dream” of building their own home can apply to a government fund designed to help those who cannot get access to standard bank lending.
The Self-Build Loan Fund, which was launched nationally in 2018 and allows borrowing up to £175,000, will reopen for applications from tomorrow.
The Scottish Government said the £6 million fund is aimed at the delivery of good quality and energy efficient housing.
Kirsten, a school teacher from Shetland who has used the fund, said: “We acquired our plot of land over 20 years ago. At that point there was an old croft house on the land which we initially planned to renovate. However, several things arose to hinder our plans.
“The most significant was my partner becoming long-term disabled after an accident. This meant a lot of disruption to our build plans.
“If the fund hadn’t been available we would have had to stop our build altogether and sell the plot of land. That would have meant it being harder for us to get onto the property ladder.”
She added: “It can be difficult or more costly to find a property that has larger living accommodation needed for wheelchair use. It may also have taken us away from our home area where family are nearby. I don’t know what we would have done without this fund.”
Borrowers have to pay an administration fee of £895 to secure their loan, and the interest rate is 5.5%, or 9% for those in default.
Loans are intended to be short-term and repaid on completion of the build.
The fund, which is administered by the Communities Housing Trust, has seen a total of 41 loans worth £6.2m approved to date.
Housing Secretary Shona Robison said: “This fund aims to unlock the dream of building your own home, in many cases allowing people to stay in their local communities.
“We know it can be more difficult to access finance for self-build projects than for buying an existing property, and this fund is a crucial lifeline for those unable to access standard bank lending.
“When loans are repaid, the money can be re-used, during the life of the fund, supporting more self-builders and providing more homes for future generations.”
Ronnie MacRae, CEO of the Communities Housing Trust, said: “In many cases, families just need a bit of extra support and are fully able to build and then repay the loan.”
