The Scottish Government is to invest a further £40 million in a scheme designed to help first time buyers and “second steppers” on low to moderate incomes get onto the property ladder. This takes the total available to £70 million for the financial year 2015/16.
The Open Market Shared Equity Scheme (OMSE), offers eligible buyers with mortgage and savings that cover between 60% and 90% of the value of a new build home an interest free loan to make up any potential shortfall in exchange for a Government share in the property.
The shared equity scheme is targeted towards lower priced “starter” homes and submitted applications will be considered by registered social landlords who manage the scheme for the Scottish Government.
There are limits set on the price of homes purchased under OMSE, which ensures only “starter” homes are available via the scheme. The price cap differs from Local Authority Area and is reliant on the size of the household applying.
The Scottish Government has published a useful guide showing the maximum “threshold price” for your area: http://www.gov.scot/Publications/2014/04/3387/17