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Government Schemes That Could Help You Buy a Home in Scotland
Not every Government scheme is open at all times, and the support available depends on the type of home you want to buy and your circumstances. The key routes to understand are LIFT shared equity, the First Homes Fund and Shared Ownership.
OMSE is currently closed. The Scottish Government has said its guidance will be updated when the scheme reopens for the 2026/27 financial year, so check the latest official position before relying on OMSE as part of a property purchase. NSSE homes are only available through participating housing associations and local authority developments, so the options will depend on what is being offered in your area. The First Homes Fund is accepting applications and may be relevant if you are buying your first home in Scotland.
The information below looks at each option in more detail, including the type of property involved, who it is designed for and where a mortgage fits into the process.
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accessible by The Mortgage Broker ScotlandWhat is the Scottish LIFT Scheme?
The Scottish LIFT scheme (Low-cost Initiative for First-Time Buyers) is a government-backed shared equity scheme that helps eligible buyers purchase a home with a smaller deposit and reduced mortgage borrowing compared to conventional purchases. Under the scheme, buyers purchase a majority share of the property, usually between 60% and 90%, while the Scottish Government funds the remaining percentage. Although the government retains a stake in the property’s equity, you fully own the share you purchase and can live in your home just like any other homeowner.
A key advantage of the LIFT scheme is it provides a financial bridge for households on low to moderate incomes who would otherwise find it difficult to secure a mortgage large enough to buy outright. Importantly, the equity share held by the government is repaid when the property is sold, based on its market value at that time. This means both the risks and rewards of property value
Open Market Shared Equity (OMSE)
Current status: The OMSE scheme is currently closed. The Scottish Government states that its page will be updated if the scheme reopens for the 2026/27 financial year.
When open, OMSE can help eligible first-time buyers and priority groups buy an existing home on the open market. Buyers usually fund 60% to 90% of the home’s cost, while the Scottish Government holds an equity stake in the remaining share.
Property price thresholds apply and can vary by local authority area and property size.
OMSE Scotland: current status, eligibility and how it works
New Supply Shared Equity (NSSE)
For New Build Properties
Current status: NSSE is available across Scotland, subject to eligible projects and property availability.
NSSE is for eligible buyers purchasing a selected new-build home from a housing association or local council. Buyers usually fund 60% to 80% of the home’s cost, while the Scottish Government holds an equity stake in the remaining share.
Available homes are limited to participating projects, so the locations and properties available can change.
NSSE Scotland: eligibility, projects and mortgage support The First Homes Fund may be worth looking at if you are buying your first home and need help pulling together the deposit. Applications opened on 24 June 2026. The fund can provide up to £10,000 towards the Home Report value of up to £300,000. It works as a shared-equity arrangement rather than a cash gift, so there are conditions attached, and it will not suit every purchase. Before relying on it when making an offer, check the current rules and make sure the mortgage, deposit and other buying costs are affordable for you. Buying your first home in ScotlandFirst Homes Fund Scotland
Who Could Be Eligible for a Scottish House-Buying Scheme?
Eligibility depends on the individual scheme and its current rules. LIFT is aimed primarily at first-time buyers and specific priority access groups, including people aged 60 or over, social renters, disabled people, members of the armed forces, recent veterans and some bereaved partners of service personnel.
NSSE may also be available to some people who have owned a home before but have experienced a significant change in circumstances, such as a marital breakdown.
The First Homes Fund is for first-time buyers. Under the current Scottish Government guidance, a first-time buyer is someone who does not own, or has not previously owned, a property in Scotland or elsewhere.
A shared-equity scheme may reduce the amount you need to borrow because you are funding only the share of the property you are buying. This can make a home purchase more achievable for some buyers, but it does not guarantee that a lender will approve your mortgage. You still need to budget for your deposit, monthly mortgage payments, legal costs, property insurance, maintenance, Council Tax and household bills. The right mortgage also needs to be affordable over the full term, not only at the point of application. When you sell, the Scottish Government’s equity share is normally repaid as a percentage of the property’s value at that time. Depending on the scheme terms, you may be able to buy out some or all of the Government’s share earlier.How Could Shared Equity Affect Your Mortgage?
Property Price Limits and Scheme Availability
Property limits and availability depend on the scheme. OMSE has maximum price thresholds that can vary by local authority area and property size when the scheme is open. NSSE is limited to eligible new-build projects offered through participating housing associations and local councils. The First Homes Fund is currently for homes with a purchase price of up to £300,000.
The Government’s share depends on the scheme and the share of the property you can afford to buy. Under OMSE, buyers usually fund 60% to 90% of the home’s cost when the scheme is open. Under NSSE, buyers usually fund 60% to 80%. For the First Homes Fund, the Government can contribute up to £10,000 and takes an equity share in the property that reflects that contribution. The percentage stake is normally repaid based on the property’s value when you sell, or earlier if you buy it out under the scheme rules.How Is the Scottish Government’s Shared-Equity Stake Calculated?
Do You Need a Deposit for a Scottish Government Scheme?
The amount you need to contribute will depend on the scheme, the property and the mortgage lender you use. For the First Homes Fund, you may need a deposit, usually around 5%, depending on the lender’s criteria. You will also need a capital repayment mortgage covering at least 25% of the buying price or valuation, whichever is lower. If you agree to pay more than the property valuation, you would normally need to cover the difference from your own funds. Before making an offer, it is important to understand how the deposit, mortgage, scheme contribution and buying costs would work together.
LIFT is not the only option to consider. Depending on your circumstances, you may also want to look at Shared Ownership, the First Homes Fund and first-time buyer Land and Buildings Transaction Tax relief. These options work in different ways, so it is important to understand the property ownership, mortgage, deposit and ongoing cost implications before choosing a route. Buying your first home in ScotlandOther Homeownership Routes and Support in Scotland
Shared Ownership
Shared Ownership allows eligible buyers to purchase a percentage of a property, usually between 25% and 75%, while paying rent on the remaining share to a housing association.
A mortgage is arranged for the share you own, and in some cases, you may be able to increase your ownership over time, depending on the scheme rules. This option is typically aimed at buyers who cannot afford full ownership and is only available on specific properties through participating housing providers.
Home Owners’ Support Fund
The Home Owners’ Support Fund is designed to help existing homeowners who are struggling to keep up with mortgage repayments. It includes options such as Mortgage to Rent, where you can remain in your home as a tenant, or a shared equity arrangement where the Scottish Government takes a stake in your property to reduce your mortgage burden.
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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 Scotland Mortgage Advisor Today
If you are considering a scheme such as LIFT, understanding how it works alongside your mortgage options is an important first step. Criteria, lender requirements, and property eligibility can vary, so clear guidance helps you move forward with confidence.
Speak to a mortgage adviser to:
- Understand how shared equity schemes work in practice
- Check your eligibility and borrowing potential
- Get a Mortgage in Principle for your share
- Prepare for the Scottish home buying process with the right structure in place