Scotland First-Time Buyer Schemes 2026

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Home » First Time Buyers Scotland 2024 » Scotland First-Time Buyer Schemes 2026

Meet the Author

Carolyn Dunion

I am an expert in: Scotland First-Time Buyer Schemes 2026

Job Title: Mortgage Broker

Mortgage advice experience: 12 years | Qualifications: DipFA

Quilter Financial Planning Network

Buying your first home in Scotland is an exciting milestone, but we know that the process can feel a bit overwhelming at times. With various government schemes and tax rules to consider, our team is here to help you understand the different ways you can get onto the property ladder.

In the following sections, Carolyn Dunion explains the latest options available to you, including the return of the First Home Fund and how the LIFT (Low-cost Initiative for First Time Buyers) shared equity scheme works. This article will also look at how first-time buyer tax relief can save you money and why it is important to know the differences between the rules in Scotland and England.

Our goal is to make your journey as smooth as possible by breaking down the eligibility criteria and application steps for these schemes. We hope this guide helps you feel more confident about your options as you look for your new home.

What government schemes are currently available for first-time buyers in Scotland?

We are very pleased to welcome back the First Home Fund in Scotland. This is a government scheme that provides first-time buyers with a boost for their deposit in exchange for some equity. The scheme has only recently launched and is a welcome enhancement to the support available. It offers a helpful way for you to increase your deposit when buying your first home.

We also offer the LIFT (Low-cost Initiative for First Time Buyers) scheme through Link Housing. This programme provides a larger equity contribution rather than additional cash funding.

Although we complete fewer LIFT applications due to the limited availability of properties that meet the scheme’s criteria, it remains an appropriate and beneficial option for eligible clients.

How does the LIFT shared equity scheme work, and who is eligible?

The LIFT scheme is an initiative where the government takes a share of the property you are buying. You must own between 60% and 90% of the home, which you can fund through a mortgage, cash, or a combination of both. The government then owns the remaining percentage.

If you buy a 60% stake, the government will own the other 40%. This arrangement can stay in place for as long as you like, but when you sell the property, the government receives their percentage of the sale price. You also have the option to buy them out over time, perhaps through a remortgage as your circumstances change.

This scheme is particularly helpful for first-time buyers on lower incomes or those with a very small deposit. It allows you to get onto the property ladder and then gradually increase your ownership as you progress in your career.

There are some restrictions to keep in mind, as there is a limit on how much you can pay for a property. These thresholds are based on the location and the number of bedrooms the property has. These limits can sometimes be prohibitive depending on where you are looking to buy.

You generally cannot pay more than the home report value when using this scheme. Despite these rules, it is definitely an option worth considering if you are struggling to bridge the gap between your deposit and the house price.

What is the Deposit Unlock scheme and can first-time buyers in Scotland use it?

The Deposit Unlock scheme was designed to help first-time buyers who wanted to purchase a new build property. Traditionally, many lenders require a larger deposit for a new build home and this programme was created to help overcome that barrier.

It was specifically intended for clients who only had a 5% deposit available. However, the scheme closed in April 2026, so it is no longer available for new applicants.

What happened to Help to Buy Scotland and the First Home Fund – are there any replacements?

Help to Buy Scotland and the First Home Fund are different versions of the same concept. This is where the government takes an equity stake in the property and provides a boost to your deposit.

The Help to Buy (Scotland) scheme is no longer in operation. However, the First Home Fund has recently been reintroduced after a period of closure. This provides another option for eligible buyers who are looking for government support to help them purchase a property.

How does LBTT (Land and Buildings Transaction Tax) First-Time Buyer relief work, and how much can it save you?

Land and Buildings Transaction Tax, which replaced stamp duty in Scotland, offers a specific relief to help first-time buyers with the cost of moving. This relief reduces the amount of tax you have to pay if your property price sits within certain lower tax brackets.

It is important to remember that these tax rules and thresholds can change over time. To get an accurate figure for your specific situation, you can use the official calculator on the government website to work out your exact liability.

Alternatively, if you are already speaking with an adviser, we can easily calculate this for you. This ensures you know exactly how much you need to set aside for your tax bill before you commit to a purchase.

Is there a difference between the first-time buyer tax relief in Scotland and England?

There are significant differences between Scotland and England because the Scottish Government controls its own property tax. This is partly because property prices in Scotland tend to be much cheaper than in England, so the thresholds are adjusted accordingly.

It is important to consider where you are purchasing the property, as this will determine which calculator applies to your circumstances. This will help you understand the relief available and ensure you are using the correct guidance for your location.

Your adviser will guide you through the process, helping you navigate these differences and understand the options which are offered, based on your individual circumstances.

Can you combine more than one scheme – for example, LIFT and LBTT relief together?

The short answer is yes. Land and buildings transaction tax relief is available for all first-time buyers, regardless of whether you are buying through any of the government equity schemes.

You can usually only have one government scheme per transaction, so you would have to choose between the LIFT programme or the First Home Fund. However, the tax relief is currently an automatic benefit for first-time buyers.

How do you apply for the LIFT scheme, and how long does the process take?

The first step is to meet with your adviser to get your Decision in Principle (DIP). You should explain that you are planning to use the LIFT scheme so we can start the process correctly.

At McKendry Dunion Financial, we will submit the application on your behalf. We need to provide specific documents along with evidence of your Decision in Principle. If your application is successful, you will be issued with a passport. This theoretically gives you three months to look for a property.

If it takes you longer to find a suitable home, they are usually quite relaxed about granting extensions. This gives you the flexibility you need during your search.

When you find a property you wish to purchase, it must be submitted to the LIFT scheme for approval before you make an offer. This is a vital part of the process.

We work closely with our clients to manage this step and to make sure you get that approval at the right time to keep your purchase on track.

How can a mortgage broker help you access the right scheme for your situation?

There are so many different schemes available, each with its own set of terms and conditions. It is essential to ensure a programme is right for your specific location and circumstances, which is where an adviser becomes invaluable.

We are often among the first to hear about changes to these programmes and have a strong understanding of how they work. By discussing your circumstances with us, we can help identify which options you may be eligible for and whether a scheme is suitable for your needs.

The availability of a scheme, such as the First Home Fund, does not automatically mean it is the right choice for everyone. An adviser can help you understand the benefits and implications, allowing you to make an informed decision about your future.

Summary:

There are several ways for first-time buyers in Scotland to get help on the property ladder. The First Home Fund has recently returned to offer deposit support, and the LIFT scheme remains a useful option for those who may need the government to take a larger share in their home.

While some older schemes like Deposit Unlock are now closed, there are still practical ways to reduce your costs, including specific tax relief for first-time buyers.

Navigating these different options can be complicated, especially with specific rules around property prices and application timings. Our advisers are here to help you understand which programmes you qualify for and which ones make sense for your long-term goals. We can handle the application process for you and make sure you have everything in place before you find your new home.

Key Points:

The First Home Fund has recently reopened and provides a deposit boost in exchange for a share of equity in your home.
The LIFT scheme allows you to own between 60% and 90% of a property while the government holds the remaining share.
LIFT is often right for those on lower incomes or with small deposits, but there are limits on property prices and bedroom numbers.
The Deposit Unlock scheme for new builds closed in April 2024 and is no longer available.
First-time buyers in Scotland can benefit from Land and Buildings Transaction Tax (LBTT) relief to reduce moving costs.
You can combine LBTT relief with an equity scheme, but you can usually only use one government equity scheme at a time.
When using the LIFT scheme, you must get approval for a specific property before you make an official offer.
Our team can help you calculate your tax liability and determine which scheme fits your personal circumstances.

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