Vida Homeloans has today announced its plans to support first-time buyers (FTBs) who take advantage of Scotland’s First Home Fund initiative making it the first specialist lender to do so. Vida will take part in the shared equity pilot scheme by lending on both New Build and existing properties. The news follows Vida’s support for the English government’s Help to Buy scheme with a number of specialist mortgage products for FTBs, movers and remortgagers.
The Scottish First Home Fund provides FTBs with a deposit of up to £25,000 to help them buy a property that meets their needs and is located in the area where they want to live, providing the customer puts in at least 5% from their own funds. Unlike the Help to Buy scheme, which only applies to new build homes, the First Home Fund is also available for existing homes and will help up to 6,000 FTBs step onto the property ladder and secure their first home.
The First Home Fund scheme is in addition to the 32,000 households that have already benefited from existing Scottish Government shared equity schemes since 2007.
The First Home Fund support will be available across all of Vida’s Help to Buy range of mortgage products to all eligible customers.
Louisa Sedgwick, pictured, Managing Director Mortgages, Vida Homeloans, said:
“With house prices continuing to rise over the years and mainstream lending criteria becoming more stringent, purchasing a first home can seem like an impossible task for many. Specialist lenders can tackle this issue head-on, however, even for customers with a complex financial situation.
As a lender that puts the customer at the heart of everything we do, we’re proud to support Scotland’s First Home Fund scheme, since it will allow even more people to own a home. With affordable rates; innovative, out-of-the-box thinking, and diverse product choices, specialist lenders have a key role to play in supporting the UK’s FTB mortgage market.”
Jane Benjamin, Director, Mortgages, Sesame Bankhall Group, adds:
“It’s clear that thousands of FTBs have already been helped by government schemes to buy their first property. With the government committed to delivering 300,000 homes a year by the mid-2020s, the new build market is looking positive. However, without the support of lenders, this pledge could be meaningless.
Many FTBs are still facing affordability issues and unless they fit the criteria from high street banks’, they may find it difficult to secure approval for a home loan. Specialist lenders are vital in changing this outcome, so it’s great to see Vida supporting Scotland’s First Home Fund scheme and making a real difference to the UK’s FTBs.”