Your first home represents more than bricks and mortar — it’s where your story truly begins. The Help to Buy scheme can open that door with just a 5% deposit, whilst the Scottish Government offers first-time buyers up to £25,000 through the First Home Fund to help make homeownership a reality.
We know that buying your first property in Scotland feels like standing at the foot of a mountain. But you’re not climbing alone — we’re here to make the path clearer and the journey more manageable. The Scottish Government recently extended the First Home Fund for another year, adding £50 million to the existing £150 million budget, responding directly to the challenges many face in securing higher loan-to-value mortgages following recent market shifts.
These schemes exist because homeownership matters — and so do you. The Help to Buy scheme provides an interest-free equity loan for five years, whilst first-time buyers also receive Land and Buildings Transaction Tax (LBTT) relief on properties valued up to £175,000. Put simply, if your future home falls within this threshold, you won’t pay this tax at all.
Every homeownership story starts with questions, concerns, and dreams of what could be. We’ll guide you through everything you need to understand about Scottish Help to Buy and first-time buyer schemes in 2025 — whether you’re taking those first tentative steps or ready to put in an offer. Because turning your homeownership dreams into keys in your hand shouldn’t feel impossible. It should feel supported, clear, and entirely achievable.
Understanding Scotland’s Home Buying Support Landscape
“Low-cost Initiative for First Time Buyers (LIFT) shared equity schemes help first-time buyers on low to moderate incomes to buy a home.” — Scottish Government, Official government authority on housing policy
Image Source: Which.co.uk
The world of home buying support has shifted beneath our feet, but solid ground remains for those ready to take their next steps. Scotland’s approach to helping first-time buyers has evolved, and we’re here to help you understand what this means for your homeownership plans in 2025.
What happened to Help to Buy in Scotland?
Here’s what you need to know: the Help to Buy (Scotland) schemes have now closed and will not be reopening. This initiative previously allowed first-time buyers and existing homeowners to purchase affordable new build homes up to £200,000 with government assistance of up to 15% of the purchase price.
Change often brings new opportunities. The Scottish Government has redirected its energy towards the Low Cost Initiative for First Time Buyers (LIFT) shared equity schemes. Think of LIFT as having two main pathways:
- Open Market Shared Equity (OMSE) – Opens doors to homes across the regular property market
- New Supply Shared Equity (NSSE) – Focuses on new-build homes from councils or housing associations
The impact speaks for itself: these schemes have supported more than 32,000 households since 2005, proving that pathways to homeownership can adapt and endure.
Scotland’s unique approach compared to the rest of the UK
Scotland has always walked its own path when supporting homebuyers. Where England’s UK Government emphasised home ownership support, the Scottish Government traditionally channeled more resources towards social rented housing.
When Help to Buy was active, Scotland’s version felt more accessible in some ways. The maximum purchase price sat at £200,000, well below England’s £600,000 threshold. Scottish buyers received a 15% equity loan compared to England’s 20% (40% in London), and uniquely, no interest charges applied on the equity loan, even after five years.
Today, the LIFT scheme remains distinctly Scottish, unavailable elsewhere in the UK.
What makes 2025 different for hopeful homeowners
This year carries particular significance as the LIFT Scheme restarts with refreshed terms. For individuals with low to moderate incomes, shared equity arrangements continue to provide a viable route to homeownership.
The 2025 updates bring focused support for those who need it most. Veterans, elderly individuals, and those with disabilities receive tailored assistance. These changes position the LIFT scheme as more than just financial support — it’s recognition that different people face different challenges on their path to owning a home.
Your Options: Government Support Available in 2025
Image Source: Barratt Homes
The landscape has changed for first-time buyers in Scotland. Some familiar schemes have closed, whilst others continue to offer genuine support for those ready to take their first steps onto the property ladder.
1. Help to Buy (Scotland) – Affordable New Build Scheme
This scheme is now closed and will not be reopening.
2. First Home Fund – Equity Loan Support
The First Home Fund is also now closed.
3. LIFT Scheme – Open Market Shared Equity
Still accepting applications for the 2025-26 financial year. You purchase between 60% and 90% of a home’s cost, with the Scottish Government holding the remaining share. Open to first-time buyers and priority groups including people aged 60+, social renters, disabled people, and military personnel.
4. New Supply Shared Equity (NSSE)
Supports the purchase of new-build homes from councils or housing associations. You typically purchase between 60% and 80% of the property, with no rent paid on the government’s share. The property becomes yours outright, with the Scottish Government’s interest secured by a standard security.
5. Shared Ownership Scheme
Allows partial ownership with the opportunity to increase your share gradually as your circumstances improve.
6. Lifetime ISA for First-Time Buyers
Save up to £4,000 yearly until age 50, with the government adding a 25% bonus (maximum £1,000 per year). Works for first homes worth up to £450,000. Must be opened before age 40 and held for at least a year before use.
7. LBTT Relief for First-Time Buyers
Relief on Land and Buildings Transaction Tax for properties up to £175,000. This saves up to £600, with 80% of first-time buyers paying no tax.
8. Help to Build – For Self-Build Projects
A £6 million Self-Build Loan Fund offering loans up to £175,000 for those unable to access standard bank lending. Covers construction costs but cannot be used for purchasing land.
Whilst some doors have closed, others remain open. The key lies in understanding which government schemes match your circumstances and taking action whilst opportunities exist.
Finding Your Path: Eligibility and Choosing the Right Scheme
“For some people, saving a deposit, securing a mortgage or finding the right home at the right price is such a struggle that they are priced out of buying on the open market.” — HomeOwners Alliance, Official UK homeownership advice organisation
Image Source: Barratt Homes
We understand that eligibility criteria can feel like another hurdle when you’re already working towards homeownership. Each scheme exists to support different circumstances, and knowing where you fit can make all the difference between feeling overwhelmed and feeling prepared.
Income and deposit requirements
Most Scottish home buying schemes ask for a minimum deposit of around 5% — a figure that reflects the reality of what many can achieve with careful planning. For Help to Buy, your mortgage and deposit needed to cover at least 85% of the purchase price. The affordability calculations typically work on 3.5 times joint gross income for couples and 4.5 times gross income for single applicants. Your monthly housing costs should sit comfortably within 45% of your net disposable income.
These aren’t arbitrary numbers. They’re designed to ensure your new home enhances your life rather than stretches your finances beyond comfort.
Regional and property value limits
Scotland recognises that house prices vary significantly across the country. The maximum threshold price for Help to Buy was capped at £200,000, whilst the LIFT scheme uses different threshold prices across Scotland based on apartment size. The LIFT Open Market Shared Equity scheme allows purchases of any size home, provided it falls within these regional threshold limits.
Who qualifies as a first-time buyer in Scotland?
For Scottish government schemes, a first-time buyer means someone who has never owned a dwelling in Scotland, elsewhere in the UK, or anywhere in the world. This definition matters particularly if you’re buying with a partner — if either of you has previously owned property, you wouldn’t qualify as first-time buyers.
Choosing what works for your circumstances
From April 2025, LIFT schemes (OMSE and NSSE) will focus on priority groups: social renters, over-60s with housing needs, disabled individuals, armed forces personnel, veterans, and bereaved military partners. If you fall outside these categories, Lifetime ISAs or mainstream mortgage options with 95% LTV loans or guarantor arrangements might suit your situation better.
The key lies not in fitting into every scheme, but in finding the one that fits you. With clear guidance and honest assessment of your circumstances, the right path becomes much clearer.
Making Your Application: A Clear Path Forward
The application process for Scottish housing schemes doesn’t have to feel like paperwork purgatory. We’ll walk you through each step, so you know exactly what to expect and when.
Your application journey, step by step
Start by reaching out to a participating home builder or housing association to see what properties are available. Next, speak with an independent financial adviser who can honestly assess what you can afford. Once you’ve found a property that feels right, complete the official application form — but remember, you must submit this to the relevant administering agent no earlier than 9 months before your expected completion date.
Getting your paperwork in order
You’ll need your completed application form, three months of payslips, recent bank statements, proof of your deposit, and proper identification. After your application is assessed, successful applicants receive an “Authority to Proceed” letter. Your solicitor will then receive standing instructions to handle the legal side of things.
Working with the right professionals
The Scottish Government actually encourages financial advisers to complete application forms alongside buyers — you’re not expected to go it alone. Currently, nine lenders offer mortgages for these schemes: Barclays, Glasgow Credit Union, Leeds Building Society, Lloyds Banking Group, Nationwide, Southwest Credit Union, Skipton Building Society, TSB and Virgin Money.
Understanding the timeline
Once you receive your Authority to Proceed, you have 3 months to conclude missives. The complete settlement process must finish within 9 months from application approval. Miss these deadlines and you’ll typically need to start the application process again.
This might sound like a lot of moving parts, but each step builds towards the same goal: getting you the keys to your new home. With proper preparation and the right support, the process becomes much more manageable than it first appears.
Your Next Steps Forward
Scotland’s property market has shifted, and we understand that can feel unsettling — but your path to homeownership remains open. The schemes available today might look different from those of previous years, yet opportunities still exist for those willing to explore what’s possible. LIFT schemes, Lifetime ISAs, and LBTT relief can still make the difference between dreaming and doing.
We know you’ve absorbed a lot of information, and perhaps you’re feeling the weight of decisions ahead. Take a breath. Every successful homeowner once sat exactly where you are now — wondering if it’s possible, if they’re eligible, if they’re making the right choices. The answer to all three is almost certainly yes.
The key isn’t perfection. It’s preparation, patience, and the right support beside you. Whether you’re eligible for priority group access to LIFT schemes or building your deposit through a Lifetime ISA, your circumstances will guide you toward the right solution. No jargon. No pressure. Just clarity about what works for your situation.
Your first home isn’t just a financial transaction — it’s the foundation for everything that comes next. The laughter echoing through rooms you’ve chosen, the keys that finally fit your own front door, the sense of belonging that comes with truly being home. These schemes exist because we believe everyone deserves that feeling.
Start where you are, with what you have, and take the first step. Whether that’s speaking to a financial adviser, checking your eligibility, or simply beginning to save — progress is progress. Your Scottish home is waiting, and we’re here to help you find your way to it.
Key Takeaways
Scotland’s housing support landscape has shifted significantly, but opportunities remain for first-time buyers willing to navigate the available schemes strategically.
• The original Help to Buy (Scotland) and First Home Fund schemes are permanently closed, but LIFT schemes continue supporting eligible buyers with shared equity arrangements.
• From April 2025, LIFT schemes restrict access to priority groups including social renters, over-60s, disabled individuals, and military personnel only.
• First-time buyers can still access LBTT relief on properties up to £175,000, saving up to £600, with 80% paying no tax at all.
• Lifetime ISAs offer 25% government bonuses on savings up to £4,000 annually, providing substantial deposit support for properties under £450,000.
• Application timelines are strict: missives must conclude within 3 months of approval, with full settlement required within 9 months of application.
The key to success lies in early preparation and understanding which schemes match your specific circumstances. Whilst fewer options exist than previously, strategic use of remaining programmes can still make Scottish homeownership achievable for determined first-time buyers.
FAQs
Q1. What financial support is available for first-time buyers in Scotland in 2025? First-time buyers in Scotland can access several support schemes in 2025, including the LIFT (Low-cost Initiative for First-Time Buyers) shared equity schemes, Lifetime ISAs offering a 25% government bonus on savings, and Land and Buildings Transaction Tax (LBTT) relief on properties up to £175,000.
Q2. Who is eligible for the LIFT scheme in Scotland? From April 2025, the LIFT scheme is primarily available to priority groups including social renters, individuals over 60 with housing needs, disabled people, armed forces personnel, veterans, and bereaved military partners. Applicants must also meet specific income and deposit requirements.
Q3. How much deposit do I need to buy a home using government schemes in Scotland? Most Scottish home buying schemes typically require a minimum deposit of around 5% of the property’s value. However, exact requirements may vary depending on the specific scheme and your individual circumstances.
Q4. What is the maximum property value I can purchase using these schemes? The maximum property value varies depending on the scheme. For example, the LIFT scheme uses different threshold prices across Scotland based on apartment size and region. It’s best to check the specific limits for your chosen scheme and area.
Q5. How long does the application process take for Scottish home buying schemes? The timeline can vary, but generally, you must conclude missives (finalise the contract) within 3 months of receiving approval, and complete the entire settlement process within 9 months from application approval. Missing these deadlines may require reapplication.