Help for first time buyers

Getting onto the property ladder can feel like an uphill struggle for many first-time buyers in Scotland. Rising house prices and the challenge of saving a deposit can make owning your own home seem out of reach, but there are many schemes and incentives that can help you get there.

Read on to find out more about the options that are available, as well as one that you may not be aware of.

First Homes Fund

The First Homes Fund is a shared equity scheme that the Scottish Government has recently relaunched. The first round of applications will open by the end of June 2026.

The scheme provides first-time buyers with a £10,000 contribution towards a deposit on their first home, on properties up to the value of £300,000. It is open to all prospective first-time buyers. The Scottish Government aims to support 50,000 first-time buyers through the scheme during this parliamentary term.

As with other shared equity schemes, the government takes an equity stake in your property, which is repaid when you sell or increase your ownership share.

Lifetime ISA (LISA)

Lifetime ISAs are available to anyone aged 18 to 39. You can save up to £4,000 per tax year, and the government adds a 25% bonus to your contributions. 

You can use the funds from your LISA towards buying your first home. Many lenders allow you to combine a LISA with shared equity schemes to further reduce the mortgage you need.

Land and Buildings Transaction Tax (LBTT) relief

Land and Buildings Transaction Tax (LBTT) is the tax you pay in Scotland when you buy a property or land above a certain price. Scotland's Land and Buildings Transaction Tax (LBTT) is equivalent to the UK's Stamp Duty. Buyers pay LBTT during the legal process upon completing their property purchase.

As a first-time buyer in Scotland, you may qualify for LBTT relief on your property purchase. This is because first-time buyers do not pay LBTT on the first £175,000 of the property purchase price. Any amount above £175,000 is taxed at the standard LBTT rates.

For example, if you buy a home for £200,000, the first £175,000 is exempt from LBTT. You only pay tax on the remaining £25,000.

The relief automatically applies once your solicitor submits your LBTT return, as long as you meet the eligibility criteria. You must be a first-time buyer, and the property must be your primary residence.

Mortgage options

If you’re a first-time buyer, chances are you’ll need to take out a mortgage.

There are plenty of mortgage products on the market, but the deals available to you will depend on your loan-to-value (LTV) ratio: how much of the property's value you need to borrow. The less you need to borrow, the better the rates you're likely to be offered.

Some mortgage providers offer products for buyers with limited deposits. These include 100% mortgages, which do not require a deposit (though they are rare), and 95% mortgages (you put in 5% of the equity and the mortgage lender covers the other 95%). You can use certain mortgage products with shared equity or shared ownership schemes, but lenders vary in their eligibility and terms.

Speaking with an independent mortgage adviser can help you identify which products are available and how they can work with any financial support you plan to use.

New build developer incentives

You might not know that many developers offer financial schemes and incentives to make buying a new home easier and more affordable.

At Tulloch, as well as the First Home Fund, we also provide a range of financial schemes that can help you get on the property ladder. 

These include LBBT contributions, where we pay some or all of the tax on your property purchase, and deposit contributions, where we pay up to 5% deposit towards your new home. 

Explore our homes for sale to see which options are available on specific developments and plots, or contact our sales consultants, who will happily talk you through the details.