The Help to Buy Affordable New Build and Help to Buy Smaller Developers schemes, which have received a £195m cash injection, will now provide a maximum equity loan of 15% of the purchase price; previously this was set at 20%.
As well as reducing its equity stake, the government has also introduced tapered maximum home values which reduce over the three-year period.
In 2016/2017 the maximum value is £230,000 which reduces to £200,000 in 2017/18 and £175,000 in 2018/19.
The previous maximum value of a home eligible for the scheme was £400,000 in Scotland. The scheme is open to first and next-time buyers of new-build properties.
Mortgageforce director Harry McGeough said this was an important scheme for intermediaries and was pleased the government had listened to the new-build sector’s call for prolonged support.
McGeough is part of Homes for Scotland, an industry body representing house building. He said Homes for Scotland had been putting forward proposals to the government for extensions to the scheme and was part of the process in bringing about this latest phase of government funding.
“This is a welcome boost to the extension of a scheme which has been very popular in Scotland and we welcome this continued government support to the new-build market for both first and next-time buyers.”
The scheme opens to buyers from 1 March 2016.
