Applications for Scotland’s First Homes Fund opened today, giving first-time buyers another potential route onto the property ladder.
For many buyers, the biggest challenge is not necessarily the monthly mortgage payment. It is getting enough money together for the deposit, legal costs, LBTT, moving costs and everything else that comes with buying a first home.
The First Homes Fund is designed to help with that first step.
What is the First Homes Fund?
The First Homes Fund is a Scottish Government shared-equity scheme for first-time buyers in Scotland.
Eligible buyers may receive up to £10,000 towards the purchase of their first home, provided the property has a purchase price of no more than £300,000.
In return, the Scottish Government takes an equity stake in the property. There are no monthly payments or interest charged on that stake. The buyer owns the home outright and holds title to the property, but the Government’s percentage share is normally repaid when the property is sold, or it can be bought out earlier.
Who can apply?
You may be able to apply if you:
- have never owned a home anywhere in the world, either on your own or jointly;
- are buying a property in Scotland as your main and only home;
- are taking out a capital repayment mortgage of at least 25% of the purchase price or valuation, whichever is lower;
- have had an offer accepted on a property, or have reserved a new build;
- apply before missives are concluded.
If you are buying jointly, at least one buyer must be a first-time buyer. Joint applications receive one award of up to £10,000.
You cannot use the scheme if you are buying in cash, buying a property to rent out, using part exchange, or already have an open application to another Scottish Government shared-equity scheme.
How do you apply?
The application is made online through the First Homes Fund website after your offer has been accepted, or after you have reserved a new build property.
Importantly, the application must be made before missives are concluded, so buyers should speak to their mortgage adviser and solicitor as early as possible.
Applicants will usually need:
- solicitor details;
- a mortgage decision in principle;
- evidence that mortgage and debt repayments will not exceed 45% of net income;
- three months’ payslips, or an SA302 if self-employed;
- a Home Report for an open market purchase, or a Reservation Agreement for a new build.
There is also a £650 application fee, payable after an award letter is issued. This is refunded if the sale does not complete, unless false or misleading information has been provided.
Which lenders are currently involved?
The Scottish Government guidance currently lists the following lenders as offering mortgages through the First Homes Fund:
- Bank of Scotland;
- Glasgow Credit Union;
- Halifax;
- Leeds Building Society;
- Lloyds Bank;
- NatWest;
- Scottish Building Society.
This is another reason why it is worth speaking to a mortgage adviser early, as not every lender may be participating in the scheme.
How could the £10,000 contribution help?
The exact figures will depend on the property price, valuation, mortgage product, lender requirements and the buyer’s circumstances.
However, the examples below show how meaningful a £10,000 contribution could be for first-time buyers looking at properties below the £300,000 cap.
Example 1: Plot 303, The Bradshaw, Orchid Park, Plean — Fixed Price £249,000
Our listing at Plot 303, The Bradshaw, Orchid Park, Plean is a three-bedroom new build home offering spacious, modern accommodation and an excellent move-in ready package.
The property includes a generous lounge, open-plan kitchen and dining area with French doors to the rear patio, ground floor WC, three bedrooms, a principal bedroom with en-suite and built-in wardrobes, and a family bathroom.
For reservations made by 29 June 2026, the package includes LBTT paid, blinds, lights and flooring, making this a particularly appealing option for first-time buyers looking for a complete, stress-free move.
If a first-time buyer purchased at £249,000, a typical 5% deposit would be:
£249,000 x 5% = £12,450
A £10,000 First Homes Fund contribution would therefore be equivalent to a substantial part of a 5% deposit at that purchase price.
If the full £10,000 was provided against a purchase price or valuation of £249,000, the Scottish Government’s equity stake would be approximately:
£10,000 ÷ £249,000 = 4.02%
This is an illustration only. Buyers would still need to satisfy the scheme requirements, lender criteria and affordability checks, and would need to budget for all other purchase costs.
Example 2: 16 Eskview Grove, Dalkeith — Home Report Value £160,000
Another current example is 16 Eskview Grove, Dalkeith, a modern two-bedroom maisonette flat in a leafy development beside the banks of the River North Esk.
With private garden space, parking and easy access to Dalkeith High Street, this is a strong example of the type of property that may appeal to first-time buyers looking for a manageable first home in a well-connected location.
Based on a Home Report value of £160,000, a typical 5% deposit would be:
£160,000 x 5% = £8,000
A £10,000 First Homes Fund contribution would therefore be more than the equivalent of a 5% deposit at that value.
If the full £10,000 was provided against a £160,000 purchase price or valuation, the Scottish Government’s equity stake would be approximately:
£10,000 ÷ £160,000 = 6.25%
Again, this is an example only. The amount a buyer needs to contribute will depend on their lender, mortgage product, personal circumstances, the final purchase price and the scheme requirements.
What about offers over Home Report value?
One point buyers should be careful about is paying above valuation.
The Scottish Government’s guidance explains that the equity stake is based on the property value or purchase price, whichever is lower. If a buyer pays above the valuation, the amount above valuation normally needs to be paid in cash.
That is particularly important in the Scottish market, where competitive properties can go to a closing date and sell above Home Report value.
Before offering, buyers should take advice on how the First Homes Fund would work alongside their mortgage, deposit and any amount offered over value.
What should first-time buyers do now?
If you are hoping to use the First Homes Fund, preparation is key.
Before offering on a property, buyers should speak to a mortgage adviser, check whether their preferred lender is participating, get a decision in principle, and speak to a solicitor about the purchase process.
Once an offer is accepted, timing matters. The application should be submitted before missives are concluded, so your solicitor and mortgage adviser need to know from the outset if you intend to apply.
At Monarch Legal, we can help first-time buyers understand the buying process, review Home Reports, note interest, submit offers and guide them through the conveyancing process from offer to completion.
If you are looking to buy your first home and want to understand how the First Homes Fund could fit into your plans, please get in touch with our team.
You can also view our current properties for sale here:
Monarch Legal Properties for Sale
