The fund reopened on 24 June as a shared equity scheme. It provides eligible buyers with a government contribution of up to £10,000 towards the purchase price of a property. In exchange, the government takes an equity stake in the home, which is repaid when the property is sold.

The scheme is available to first-time buyers purchasing a main residence in Scotland. It can be used to buy a home worth up to £300,000.

Under the eligibility criteria, only one applicant in a joint application must be a first-time buyer. Buyers are required to provide a minimum personal deposit of 5% of the property’s full purchase price. The mortgage must be on a repayment basis and can be used for both new-build and existing homes.

Where the agreed purchase price is higher than the property’s valuation, buyers must provide a 5% deposit based on the valuation amount. They must also cover the difference between the valuation and the purchase price.

Although the scheme includes a government equity contribution, buyers will own 100% of the property. Mortgage lending and product selection will continue to be based on the property’s full purchase price.

Applicants must select a mortgage product from the affordable housing range and apply under the shared equity scheme category.

The equity loan is interest-free for the entire term and does not require any ongoing equity loan payments. The buyer’s equity stake must be expressed as a whole-number percentage, meaning the loan amount may need to be rounded up or down. Any increase resulting from rounding cannot exceed the maximum contribution available under the scheme.