There are a range of first-time buyer mortgage schemes in Scotland, most of which are not open exclusively to first-time buyers. If you’re a current or previous homeowner struggling to purchase a new property, you may also qualify if you’re in a property demographic.
Below we look in greater detail at the schemes available, how to qualify for them, and why it’s important to seek advice when looking for a mortgage to accompany the scheme.
What mortgage schemes are available in Scotland?
There are multiple government mortgage schemes in Scotland, each with their own distinct terms and criteria, as follows:
Low-cost Initiative for First Time Buyers (LIFT) - Shared Equity schemes
Scotland offers two shared equity schemes under the LIFT initiative, both of which target low-income first-time buyers; as well as other priority borrowers, such as older people, social housing tenants and armed forces personnel.
Under both schemes, the Scottish Government owns a share of the property equal to their equity amount, usually around 25%. Those buying have complete title ownership, but if the property is sold, proceeds of an equivalent percentage will go to the Scottish Government.
The Open Market Shared Equity scheme (OMSE)
Applies to all homes for sale, and is not limited to housing association or council house properties. However, prices are capped depending on the area and the size of the property.
New Supply Shared Equity (NSSE)
Helps first-time buyers in Scotland specifically towards the cost of a new build home, either from a housing association or a local council.
Criteria
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You must not own any other property
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You cannot afford to buy a house without the scheme
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You will need to qualify for a repayment mortgage for your share
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Priority is given to the following groups; first time buyers with limited housing alternatives, members of the armed forces or veterans who have left within the past two years, widows, widowers and other partners of service personnel for up to two years after death in service, public sector tenants, families on low incomes and disabled people
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Specific eligibility can vary by area so it’s best to contact the local social landlord or council for further information
The Shared ownership scheme
Shared Ownership is available in Scotland, as well as across the rest of the UK, although the rules vary slightly in Scotland. It allows you to buy a 25%, 50% or 75% share of a home, with the remaining share owned by a housing association. You pay an Occupancy Charge to the housing association to cover the share they own, and take out a mortgage to buy your share.
To qualify in Scotland, you generally must meet the following:
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Most associations require a minimum household income of around £15,000 to ensure you can cover the mortgage and occupancy charge
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Your total housing costs should not exceed 40% of your net income
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The property must be your sole and primary residence
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The scheme cannot be used for Buy-to-Let
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While you are usually exempt if you own another property, you may still be eligible if you are going through a relationship breakdown or have varying needs (e.g., a disability) that your current home does not meet
Home Owners' Support Fund
Also sometimes known as the mortgage rescue scheme, this scheme may be available to you if you're at risk of having your home repossessed. There are two options available as part of this scheme run by the Scottish Government:
The Mortgage to Rent scheme
This option allows a social landlord, such as a housing association or local council, to buy your home. You'll continue to live there as a tenant but will no longer own your home.
You may be eligible for this scheme if all of these apply to you:
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your lender won't agree to lower mortgage payments
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you've paid less than your agreed mortgage amount for at least 3 months
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you're behind by at least the same amount as one monthly payment of your mortgage
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you can't get help through UK Government support schemes, or you might still lose your home even if you do get support
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your home's value is equal to or less than the property thresholds
The Home Owners' Support Fund has extended the pilot to help home owners who've reached the end of their mortgage but can't afford to pay what's left. This is called the End of Term Cases Pilot.
Mortgage to Shared Equity
With this option the Scottish Government buys a stake in your property of up to 30%. This allows you to reduce your mortgage repayments, as it reduces the outstanding loan significantly. However, you will still own and have responsibility for maintaining and insuring your home.
On top of the Mortgage to Rent scheme criteria, to be eligible for the Mortgage to Shared Equity scheme you must also:
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have paid for or own at least 20% of your home
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have a capital and interest mortgage, not an interest-only mortgage
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your home must be fit to live in
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You must not have an inhibition to sell registered on your property
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You must normally not have a notice of potential liability on your property
Please note: If a trustee has power over what happens to your property then you will not qualify regardless of meeting the other requirements.
The Mortgage Guarantee Scheme
The mortgage guarantee scheme became permanent in Scotland and across the UK in July 2025. No application is required as it solely offers security to lenders, by allowing them to offer 95% mortgages with some government protection. Many lenders now offer this level of LTV outside of the scheme, however, so you won’t necessarily need to go to a lender that participates in the scheme to secure this level of borrowing.
How to choose the right mortgage scheme
When selecting the right mortgage scheme for you, you’ll have to ensure you qualify for both the scheme's criteria, and the criteria of an approved lender. As not all lenders support applications through home ownership schemes in Scotland, this can be fairly limiting.
If you’re looking to buy a property in Scotland through a home ownership scheme, it's a good idea to speak to a broker at the outset. They can ensure that you approach a lender who is not only comfortable with your circumstances and supportive of the particular home ownership scheme you’re using, but also that they can offer you the best deal available to you.
Find the right mortgage scheme for you
Schemes that aren’t available in Scotland
There have been similar government schemes available in Scotland previously, such as the First Home Fund and the Help to Buy Scheme (Scotland) both of which are now closed indefinitely.
You’ll also find that many of the other UK homeowner schemes are only available in certain countries, as England, Wales and Northern Ireland tend to have their own distinct schemes. However, some are available nationally, with local variations, such as the shared ownership scheme.
Buy-to-let mortgages schemes
Home ownership schemes aren’t designed to purchase buy-to-let properties, so there are no schemes available for this purpose in Scotland, nor the rest of the UK. However, if you’re a first-time landlord looking to buy in Scotland, there are some mortgage lenders that would be willing to consider your application.
If you’re struggling with the general costs of entering the buy-to-let market, The Scottish Government does offer an interest-free or low-interest loan to registered landlords, which is intended exclusively to improve the energy efficiency of their rental properties in order to meet the new EPC standards coming into force.
Why choose Money Helpdesk for your mortgage needs?
There are a range of options available to prospective home buyers in Scotland looking for an easier route to home ownership. In some cases a home ownership scheme, such as those outlined above, will be perfect for you, however, it may be that you qualify for traditional mortgages from lenders you aren’t familiar with.
By approaching a whole of market broker, like ourselves, you can ensure you’re looking at every potential option available to you before making that important decision about your mortgage. At Money Helpdesk we have brokers with specialist knowledge of Scottish home buyer schemes, and can recommend the most suitable lenders for each scheme, should you choose to buy through one.
Simply get started to speak to an expert today.
FAQs
Not all lenders are open to using all schemes. For example, there are only around 14 lenders willing to process your application through the LIFT scheme. This is why using a mortgage broker, like ourselves, can be particularly helpful if you’re opting for a home ownership scheme.