First Time Buyers
First Time Buyer Mortgages in Scotland
Getting onto the property ladder is exciting, but it can also feel overwhelming. From working out how much you can borrow to understanding deposits, Home Reports and making an offer, there’s a lot to get your head around.
I’m Scott, a mortgage and protection adviser based in Edinburgh, helping first-time buyers across Scotland take their first step onto the property ladder.
I’ll help you understand your mortgage options, compare suitable lenders and guide you through the process, from your first questions to getting your mortgage offer.
Buying Your First Home In Scotland
3 things that catch Scottish First Time Buyers out
Buying in Scotland works a little bit differently. Here’s what you should know before getting started.
1. Understanding Home Reports
Most properties marketed in Scotland come with a Home Report, containing a property valuation, details of its condition and information about energy efficiency. Pay particular attention to the surveyor’s valuation and any flagged repairs, both could affect your budget and mortgage options.
2. Offering over the valuation
If the property is valued at £200,000 but you offer £210,000, you’ll need to cover the extra £10,000 yourself. That’s on top of your mortgage deposit, and it’s something many buyers don’t budget for.
Example: Buying with a 5% deposit
Home Report Value
£200,000
Purchase Price
£210,000
5% Mortgage Deposit
£10,000
Amount Over Value
£10,000
Total Cash Required
£20,000
Illustrative 95% mortgage based on the £200,000 valuation. Excludes other purchase costs.
3. Closing dates and missives
Popular Scottish properties can go to a closing date, where interested buyers submit offers. Having the highest offer doesn’t guarantee you’ll get the property. Once the legal conditions are agreed and missives are concluded, you’re normally committed to the purchase. Pulling out afterwards can be expensive.
Help for Scottish First Time Buyers
Help getting onto the property ladder
You may be eligible for Scottish Government assistance to help you buy your first home.
First Homes Fund
Shared equity assistance of up to £10,000 for eligible first-time buyers.
The Scottish Government takes a percentage share of your home, which means the value of its stake can increase if your property rises in value.
The LIFT Scheme
Shared equity support to help eligible buyers purchase a suitable home.
You normally fund between 60% and 90% of the property’s cost, with the Scottish Government holding the remaining share. Eligibility and property price limits apply.
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Frequently Asked First Time Buyer Questions
How much deposit do I need to buy my first home in Scotland?
You don’t necessarily need a huge deposit to buy your first home. Some lenders offer mortgages with deposits as low as 0%, although a larger deposit could give you access to more lenders and potentially better interest rates.
One thing to remember in Scotland is that if you offer more than the Home Report valuation, you’ll normally need to cover that difference yourself, on top of your deposit.
How much can I borrow as a first-time buyer?
There’s no single answer, as different mortgage lenders have different affordability criteria.
Lenders consider your income, regular expenditure, existing debts, credit history and personal circumstances when deciding how much they’re prepared to lend.
Some lenders may offer considerably more than others, even when looking at exactly the same income.
I can assess your circumstances and compare lenders to help you understand your realistic borrowing options before you start viewing properties.
One thing to remember in Scotland is that if you offer more than the Home Report valuation, you’ll normally need to cover that difference yourself, on top of your deposit.
Can I use a Lifetime ISA to buy my first home in Scotland?
Yes! A Lifetime ISA (LISA) can be a great way to save towards your first home, with the Government adding a 25% bonus to your contributions, up to £1,000 per year.
To use it without a withdrawal charge, you must meet certain conditions, including purchasing a property costing no more than £450,000 and having made your first LISA payment at least 12 months earlier.
If your property exceeds the £450,000 limit, a withdrawal charge applies. Your solicitor will arrange the withdrawal when you’re buying.
Do first-time buyers pay Stamp Duty in Scotland?
Not always. Land and Buildings Transaction Tax (LBTT) is Scotland’s equivalent of Stamp Duty.
Eligible first-time buyers pay no LBTT on the first £175,000 of the purchase price, compared with the standard £145,000 threshold.
This can save you up to £600 in tax. However, you may still have LBTT to pay if the property costs more than £175,000.
If you’re buying with someone else, both purchasers must qualify as first-time buyers to claim the relief.
How much does a mortgage broker charge for first-time buyers?
Your initial consultation with Aitken Financial Services is completely free, so we can discuss your circumstances and explore your mortgage options without any upfront commitment.
There may be a fee for arranging your mortgage, depending on your circumstances. Our typical fee for a First Time Buyer purchase is £497, although in some cases this may differ.
Any applicable fee will be explained and confirmed during our initial meeting, so you’ll know what to expect before proceeding.