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What is the New Supply Shared Equity scheme? (NSSE)
The New Supply Shared Equity (NSSE) scheme is a Scottish Government shared-equity route for people who cannot afford the full cost of a suitable new-build home from a local council or housing association.
You usually buy the largest share you can afford, normally between 60% and 80% of the home’s cost. The Scottish Government holds the remaining share. You have complete title to the home, but the Scottish Government’s share is protected through a shared-equity agreement.
You remain responsible for the mortgage and the usual costs of owning a home, including insurance, repairs, maintenance, council tax and household bills.
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accessible by The Mortgage Broker ScotlandThe scheme is open to first-time buyers and certain priority access groups. This includes people aged 60 and over, social renters, disabled people, members of the armed forces, qualifying veterans and bereaved partners of service personnel. It may also be available to people who have previously owned a home but experienced a significant change in circumstances, such as a relationship breakdown. The relevant local council or registered social landlord assesses whether you qualify and whether you can afford a suitable new-build home without NSSE support.Who may be eligible for NSSE?
How do I apply for the New Supply Shared Equity scheme?
Start by checking whether there is a current NSSE project in an area that suits you. Project availability changes, and not every area of Scotland has homes available through the scheme at the same time.
For a specific development, contact the relevant local council or registered social landlord directly. They will explain the application process and assess whether you qualify for the scheme.
It can be helpful to speak to a mortgage adviser before or alongside this process, so you have a clearer view of likely borrowing, personal contribution and lender requirements.
A simple route through the process:
- Check current NSSE projects and contact the provider for the development you are interested in.
- Discuss your mortgage readiness and likely borrowing position with an adviser.
- Submit the NSSE application requested by the provider.
- If the provider confirms you qualify, progress the mortgage application for the chosen home.
Can I buy a bigger share of my NSSE home in the future?
You may be able to increase your ownership share after buying. Any increase must be at least 5% in a year. In many cases, you can increase your share up to 100%, meaning the Scottish Government no longer holds a share in the property.
You will need to pay the relevant valuation, legal and administration costs. The provider that handled the sale can explain the current process, and you should speak to your solicitor before making a decision.
What is a golden share?
Some NSSE properties have a golden-share clause. This means the Scottish Government keeps a 20% share, usually in areas with fewer affordable homes, so you can increase your ownership only up to 80%.
Your shared-equity agreement will confirm whether a golden share applies. Check the agreement with your solicitor before assuming you can buy the property outright later.
The local council or registered social landlord will usually ask for information about your current income, the size of mortgage you may be able to afford, your personal contribution, your household and your current accommodation. To assess the mortgage side, an adviser or lender may also need documents such as: The documents requested will depend on the provider, lender and your circumstances. Providing information does not guarantee NSSE eligibility or a mortgage offer.What information will I need for an NSSE purchase?
Meet The Scottish Mortgage Team
Our Scottish advisers can help you understand the mortgage requirements for a shared-equity new-build purchase, including affordability, lender criteria and the information you may need before speaking to the relevant provider.
From Setback to Success: First-Time Buyers Secure £237K Mortgage
Initial Enquiry
| New Lending | Property Value | Balance | Loan to Value | Term | Interest Rate | Payment Type | Product Type | Payment |
| Mortgage | £250,000 | £237,500 | 95.00% | 25 | 5.18% | 2 Year Fixed | £1,411.98 |
The Challenge
- Previous adverse credit, including defaulted accounts.
- 5% deposit.
The Solution
After thorough research and discussions with lenders, we were able to secure a mortgage solution that met all of the client’s objectives. Despite the limited number of lenders allowing a First Time Buyer mortgage with adverse credit and 5% despoit. We successfully placed with a lender that makes their lending decision on the overall credit score. Since one of the applicants had a good credit score, this helped balance out the score and pass criteria with the lender.
The Result
How Did This Help?
This solution not only provided the customers with the property they wanted to purchase, it also restored their confidence, by understanding the context of the credit issues and leveraging a lender with flexible criteria, we turned a potentially declined application into a successful outcome. Demonstrating the value of compassionate, knowledgeable brokerage.
Advisor: Harrison AndrewsSpeak to a Scottish mortgage adviser about NSSE
If you have found an eligible NSSE home, or want to understand whether your budget could support a shared-equity purchase, an early conversation can help you prepare with more confidence.
A Scottish mortgage adviser can help you:
- explore your likely mortgage options and borrowing position
- understand the personal contribution and ongoing costs you will need to plan for
- explain lender requirements for a new-build shared-equity purchase
- decide whether a Mortgage in Principle is appropriate before you progress
The relevant local council or registered social landlord decides scheme eligibility and manages the NSSE application for its properties.