Latest news with #OpenMarketSharedEquity
Scottish Sun
2 days ago
- Business
- Scottish Sun
Thousands of Scots struggling to save for first home secretly barred from government's help to buy scheme
Dawn Ramsay, a Dundee-based mortgage broker, said the rule change was a 'kick in the teeth' for first time buyers 'kick in the teeth' Thousands of Scots struggling to save for first home secretly barred from government's help to buy scheme Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MOST first-time buyers have been quietly banned from an SNP government scheme to help people get on the housing ladder. The Open Market Shared Equity scheme allows people to pay for as little as 60 per cent of a sale price, with the state buying the rest. Sign up for Scottish Sun newsletter Sign up 1 Most first-time buyers have been quietly banned from the SNP help to buy scheme Credit: Alamy It had mostly been used by first-time buyers on lower incomes. But now first-time buyers have been locked out of the scheme unless they fit into a 'priority' group such as social renters or people with disabilities. Data obtained by the BBC shows that the majority of the scheme's past users did not belong to any of the priority groups. Dawn Ramsay, a Dundee-based mortgage broker, said the rule change was a 'kick in the teeth' for first time buyers. She said: 'It pushes the house price up because there could be five or six people looking at a property, and some of them may well have financial backing where they can pay over the asking price for that property. 'It's not a level playing field. These are the people that will keep our housing market moving.' And Scottish Tory shadow housing secretary Meghan Gallacher said: 'This is typical of the sleekit SNP. No wonder they didn't people knowing they had quietly ditched this flagship scheme during a housing emergency that has spiralled on their watch. 'SNP ministers appear hellbent on turning their noses up at those with aspirations of getting on the property ladder with short-sighted decisions like this.' Last year, 182 out of 210 successful OMSE purchases were made by first-time buyers with just six per cent in the priority groups. The scheme does not allow househunters to bid over the asking price so low-income buyers are frequently outbid by those that can afford to pay over the odds for property, particularly investors. Homeowners blast 'tone-deaf' plan by billionaire to build massive resort & rename town as they insist it'll 'destroy' it The scheme opened in 2007 and was mostly used by low-income first-time buyers seeking a way out of private lets or family homes. The Scottish Government declared a national housing emergency in May last year pledging to increase housing supply and tackle homelessness, with more than four in 10 Scots struggling to meet housing costs. A Scottish Government spokesperson said: 'Supporting social renters to make the transition to affordable home ownership will help free up social rented accommodation, which in turn could help families move out of temporary accommodation.'
Daily Record
11-06-2025
- Business
- Daily Record
New mortgage discount scheme of up to 90% for first-time buyers in certain priority groups
Social renters, disabled people, those aged 60 and over, members of the armed forces and veterans living in Scotland may be eligible for the Open Market Shared Equity Scheme. A scheme to help people in priority groups buy a home on the open market is open for new applications. The Open Market Shared Equity Scheme (OMSE) is available to people across Scotland who can't afford the full price of a home from groups which include social renters, disabled people, people aged 60 and over, members of the armed forces and veterans. Applicants can apply for between 60 and 90 per cent of the property's value without having to purchase it in full, with the Scottish Government owning the remaining share. Commenting recently at the start of this year's application drive, Social Justice Secretary Shirley-Anne Somerville said: 'The cost of living crisis, high energy prices, inflation and interest rates make it increasingly difficult for some people to buy their own home. We want to give people in the priority groups the same opportunity as other buyers to own their home and I would encourage anyone looking to buy a home to apply to the scheme.' Ms Somerville added: 'Giving more people the chance to buy an affordable home also plays a crucial role in reducing homelessness and eradicating child poverty in Scotland.' Applications to the Open Market Shared Equity Scheme can be made on the Link Housing website here. Priority access groups to the Open Market Shared Equity scheme The scheme is available across Scotland to these priority access groups only: people aged 60 and over social renters - people who rent from the council or a housing association disabled people members of the armed forces veterans who have left the armed forces within the past two years widows, widowers and other partners of service personnel for up to two years after their partner has lost their life while serving How the scheme works Guidance on explains that through the OMSE scheme you will be able to buy a home without having to fund its entire cost and will get help from the Scottish Government. You'll pay for the biggest share which is usually between 60 per cent and 90 per cent of the home cost. The Scottish Government will hold the remaining share under a shared equity agreement which it will enter into with you. For example, if you pay for 75 per cent of the home, the Scottish Government will help with 25 per cent of the purchase price. You'll have 'complete title' to your home and your name will be on the title deeds for it. But there will be a mortgage (or 'standard security') on the home to make sure the Scottish Government's share is protected. It also means that if you ever choose to sell the home, the Scottish Government will get a share of the money. How to apply If you want to apply for the scheme you should read through this information leaflet first. If you're eligible for the scheme contact the administering agent Link Homes - full details on website here. There are currently 13 lenders offering mortgages for the Open Market Shared Equity scheme: Bank of Scotland Barclays Capital Credit Union Glasgow Credit Union Halifax Leeds Lloyds Bank Nationwide Natwest Scottish Building Society Skipton TSB Scotwest Credit Union If your application is approved, you will get a 'passport letter' which says you can now look for a home under the scheme. The 'passport letter' will tell you the maximum price you can pay for a home. It will also tell you what your next steps should be. Once you have found a home you like you will be asked to provide a copy of the valuation. This will usually be provided in the Home Report, which the home's seller will give you. When you're ready to buy, you will need a solicitor to act on your behalf to assist you with buying the home. The Scottish Government has its own solicitor who will handle work involving its equity share. You will then have to pay for your share of the home's price in the usual way, along with any other costs, such as legal costs, registration fees and any stamp duty. More details about the scheme including what happens after your buy a home can be found on here.
Daily Record
06-05-2025
- Business
- Daily Record
First-time homebuyers in priority groups can apply for 90% mortgage discount scheme
Social renters, disabled people, those aged 60 and over, members of the armed forces and veterans living in Scotland may be eligible for the Open Market Shared Equity Scheme. A scheme to help people in priority groups buy a home on the open market has reopened for applications. The Open Market Shared Equity Scheme (OMSE) is available to people across Scotland who can't afford the full price of a home from groups which include social renters, disabled people, people aged 60 and over, members of the armed forces and veterans. Applicants can apply for between 60 and 90 per cent of the property's value without having to purchase it in full, with the Scottish Government owning the remaining share. Commenting at the launch of the 2025/26 scheme last month, Social Justice Secretary Shirley-Anne Somerville said: 'The cost of living crisis, high energy prices, inflation and interest rates make it increasingly difficult for some people to buy their own home. We want to give people in the priority groups the same opportunity as other buyers to own their home and I would encourage anyone looking to buy a home to apply to the scheme.' Ms Somerville added: 'Giving more people the chance to buy an affordable home also plays a crucial role in reducing homelessness and eradicating child poverty in Scotland.' Applications to the Open Market Shared Equity Scheme can be made on the Link Housing website here. Priority access groups to the Open Market Shared Equity scheme The scheme is available across Scotland to these priority access groups only: people aged 60 and over social renters - people who rent from the council or a housing association disabled people members of the armed forces veterans who have left the armed forces within the past two years widows, widowers and other partners of service personnel for up to two years after their partner has lost their life while serving How the scheme works Guidance on explains that through the OMSE scheme you will be able to buy a home without having to fund its entire cost and will get help from the Scottish Government. You'll pay for the biggest share which is usually between 60 per cent and 90 per cent of the home cost. The Scottish Government will hold the remaining share under a shared equity agreement which it will enter into with you. For example, if you pay for 75 per cent of the home, the Scottish Government will help with 25 per cent of the purchase price. You'll have 'complete title' to your home and your name will be on the title deeds for it. But there will be a mortgage (or 'standard security') on the home to make sure the Scottish Government's share is protected. It also means that if you ever choose to sell the home, the Scottish Government will get a share of the money. How to apply If you want to apply for the scheme you should read through this information leaflet first. If you're eligible for the scheme contact the administering agent Link Homes - full details on website here. There are currently 13 lenders offering mortgages for the Open Market Shared Equity scheme: Bank of Scotland Barclays Capital Credit Union Glasgow Credit Union Halifax Leeds Lloyds Bank Nationwide Natwest Scottish Building Society Skipton TSB Scotwest Credit Union If your application is approved, you will get a 'passport letter' which says you can now look for a home under the scheme. The 'passport letter' will tell you the maximum price you can pay for a home. It will also tell you what your next steps should be. Once you have found a home you like you will be asked to provide a copy of the valuation. This will usually be provided in the Home Report, which the home's seller will give you. When you're ready to buy, you will need a solicitor to act on your behalf to assist you with buying the home. The Scottish Government has its own solicitor who will handle work involving its equity share. You will then have to pay for your share of the home's price in the usual way, along with any other costs, such as legal costs, registration fees and any stamp duty. More details about the scheme including what happens after your buy a home can be found on here.
