Publication - Advice and guidance

First Home Fund: scheme overview

Published: 14 Jul 2020

An overview of the First Home Fund shared equity scheme as a comparison table.

14 Jul 2020
First Home Fund: scheme overview

First Home Fund – Scheme Overview Item


Scheme type

Shared Equity with a monetary amount expressed as a % equity stake

Scheme name

First Home Fund


18 December 2019

Open to

All first time buyers

FTB definition

For the purpose of this scheme, a first-time buyer is a person who does not own nor has previously owned a dwelling in Scotland, the rest of the UK or the rest of the world. All forms of ownership in the applicable legal system which are equivalent to ownership in Scotland are treated as ownership for this purpose.

Main residence

All applicants must reside in the property as their main residence. There will be a corresponding prohibition on letting, lodgers, sharing occupation etc.


Newbuild and existing properties.

Price cap



Home Report Value used to calculate equity stake. Properties can be bought above valuation but Home Report Value is used to calculate equity stake if property is purchased above the valuation figure. If purchase is below valuation then the purchase price is used.

Property standard

Above tolerable standard

Property alterations

Permission is required for alterations which are unlikely to be refused (assuming all planning requirements are satisfied) and the Scottish Government will benefit from the resulting uplift in value.

Builder incentives

No restrictions on builder incentives for newbuild purchases and assisted purchase is permitted but part exchange is not permitted.

Maximum Scottish Government equity stake

Scottish Government equity stake cannot be more than 49% of the property value or purchase price, whichever is the lower.

Interest on equity loan

No interest will be charged on the Scottish Government stake at any point.

Sustainability check

Yes. Sustainability Calculator will test and ensure home ownership is affordable and sustainable for buyers in the long term

Cash buyers

Not allowed

Minimum mortgage

25% of purchase price - same as Help to Buy (HTB)


Deposit of around 5%, subject to lender requirements and any amount over valuation must be cash funded.

Mortgage type

Capital repayment

Award of assistance

One award per property purchase, not per first-time buyer

Transaction sequence and timing

Applicants to identify and make an offer on a property before applying to the scheme. Scheme approval will be given for a 3-month period, within which missives should be concluded. A further 6-month period will be