How Scotland's First Home Fund Helps First-Time Buyers

In 2026, the Scottish Government’s relaunched the First Home Fund, eligible to first-time buyers and providing up to £10,000 towards the purchase of their first property.

What Is the First Homes Fund in Scotland?

The First Home Fund is a Scottish Government initiative designed to help first-time buyers overcome one of the biggest barriers to homeownership: raising enough money to buy a property.

The scheme reopened for applications in June 2026 and offers eligible buyers a contribution of up to £10,000 towards a property valued at £300,000 or less. It operates on a shared-equity basis, meaning the Scottish Government takes an equity share in the property rather than providing a conventional cash grant that never needs to be repaid.

It is important to distinguish the current scheme from the original First Home Fund, which closed in March 2022. The relaunched First Home Fund has its own eligibility criteria and application process.

For buyers who have been saving for years, this support could help bridge the gap between their current savings and the cost of purchasing a home.

Who Is Eligible for the First Homes Fund in 2026?

Before planning your purchase around the scheme, check that you meet the eligibility requirements.

Generally, you must:

• Be a genuine first-time buyer: You must never have owned a property, either individually or jointly, in Scotland or elsewhere in the world.
• Buy a property worth no more than £300,000: The scheme covers eligible existing homes and new-build properties.
• Live in the property: The home must be your main and only residence in Scotland, rather than a buy-to-let or second home.
• Take out an eligible mortgage: You must have a capital repayment mortgage covering at least 25% of the property’s purchase price or valuation, whichever is lower.
• Meet the scheme’s affordability requirements: Your mortgage and debt repayments must meet the relevant affordability criteria.
• Use an eligible property and purchase arrangement: Cash-only purchases and transactions involving part-exchange are not eligible.

If you’re buying with a partner, at least one applicant must be a first-time buyer, and any existing property owned by a joint buyer must be sold before completion. Only one award of up to £10,000 is available per property purchase.

Eligibility rules can be detailed, so it’s worth checking the official guidance before making an offer.

How Much Money Could You Receive?

Eligible buyers can receive up to £10,000 towards their purchase. The contribution is calculated as an equity share in the property, so it is important to understand what that means for you financially.

For example, imagine you’re buying a property for £200,000 and receive the full £10,000 contribution. The Scottish Government’s contribution would represent 5% of the property’s purchase price.

You would still need to arrange a suitable mortgage and cover the remaining purchase costs. Depending on your lender and circumstances, you may also need to provide your own deposit.

The contribution is not an interest-free personal loan with fixed monthly repayments. Instead, the government holds an equity stake, and repayment is generally triggered when you sell the property or another event specified in your shared-equity agreement occurs. The amount repayable can reflect the property’s value at that time.

How to Apply for the First Homes Fund

Applying for the fund involves several steps, and timing is particularly important.

Step 1: Speak to a Mortgage Adviser

Start by speaking to a regulated mortgage adviser or independent financial adviser. They can assess your borrowing capacity, review your financial circumstances and help you decide whether shared equity is suitable for you.

You should also obtain a mortgage decision in principle so you have a clearer idea of what you can afford.

Step 2: Find a Suitable Property

Look for a home priced at £300,000 or less that meets the scheme’s requirements. You can consider both new-build and existing properties.

Take time to review the property’s Home Report, condition and likely running costs before making a commitment.

Step 3: Make an Offer and Appoint a Solicitor

Once you have found a suitable property and your offer has been accepted, appoint a solicitor to handle the conveyancing process.

In Scotland, the legal process of concluding missives is particularly important. You must submit your First Homes Fund application before your solicitor concludes missives.

Step 4: Submit Your Application

You can apply online through the official First Homes Fund process, or your mortgage adviser can apply on your behalf.

You will generally need:

• Your solicitor’s details.
• A mortgage decision in principle.
• Evidence of your income and debt repayments, such as recent payslips or the appropriate self-employed income documentation.
• A Home Report for an eligible open-market purchase, or the relevant reservation and valuation documents for a new-build or private sale.

There is a £650 application fee. The official guidance explains the circumstances in which this fee may be refunded.

Step 5: Receive Approval and Complete Your Purchase

If your application is approved, you will receive an award letter. Under the published process, you generally have three months to conclude missives and a further six months after that to complete the purchase.

Your solicitor will coordinate the funding with your mortgage and the other funds required to complete the transaction.

Always check the latest scheme guidance and the dates in your award letter, as missing a deadline could mean having to apply again.

Is the First Homes Fund Worth Considering in 2026?

For eligible first-time buyers in Scotland, the First Homes Fund could make buying a home more achievable by providing up to £10,000 towards a property purchase.

It may be particularly helpful if you have a deposit saved, can afford mortgage repayments but need additional support to reach your target purchase price. However, the government will retain an equity stake, so it is important to understand the long-term financial implications.

The best approach is to establish your budget, check your eligibility, speak to a regulated mortgage adviser, and involve your solicitor early in the process.

The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.