At Pivotal Financial Planning we always try to help every person we speak to, whether they have a million pounds to invest or they want to start their property dream.

One Government scheme which is helping people in Scotland to get onto the property ladder is LIFT (Low-cost initiative for First Time Buyers).

Thousands of people of across Scotland have already benefited from the scheme, purchasing a home they would have otherwise been unable to afford.

What Is LIFT?

The scheme aims to help people on low to moderate incomes who wish to become homeowners, but are unable to raise the money necessary for an average deposit. LIFT is split into two different types of Government support and which one is best for each applicant will depend on their circumstances.  The loan is interest free while it is outstanding, so long as the buyer is not in breach of its terms.

The equity loan works as a fixed percentage of the value of the property based on the initial purchase price. The maximum percentage which can be borrowed is 40% of a property value, which means if someone was purchasing a property at £100,000 and borrowed 20%, then they would receive £20,000 towards the cost of their home. The mortgage would then be £80,000.

This scheme is ideal for buyers who can’t afford to purchase the full price of the house. The loan helps to reduce the mortgage and risk for the lender. In this instance the Government will pay a percentage of the cost, for example 40%, leaving the buyer needing just 60%, making it more likely for them to be accepted for a mortgage.

The amount borrowed from the LIFT campaign must be repaid – although there is no set time – and if the property is sold and there is a profit from the sale, the Government will receive the same percentage back from the house sale. If the house has increased in value the percentage returned to the LIFT scheme will reflect that increase. If the house has decreased in value from when you first bought it, the percentage returned to the LIFT scheme will again reflect the decrease and you won’t owe anything extra.

You can pay back the loan to the LIFT scheme at any point too with either lump sum payments or regular monthly contributions.

What’s The Criteria For LIFT?

The criteria for LIFT is very clear and easy to understand:

• Low – moderate income
• First time buyer
• Priority groups – people in the armed forces or council/ housing association tenants
• Property price and size must be within the maximum threshold for each region set by Scottish ministers
• Must reside in the property – this means the property cannot be let out

Who Qualifies for LIFT?

There are two versions of the LIFT Scheme – Open Market Shared Equity (OMSE) and New Supply Shared Equity (NSSE).

The NSSE scheme is available to first-time buyers. Priority will be given to:

•         people aged over 60

•         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 lost their life while serving

The OMSE scheme is available across Scotland. It’s open to first-time buyers and these priority access groups:

•         people aged over 60

•         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

Apply for LIFT Scheme

If you’re interested in applying for the LIFT scheme or finding out whether you would be applicable, contact Pivotal Financial Planning today and speak to one of our qualified mortgage advisers.

You can call us on 0141 243 2475 or alternately use our online contact form and we’ll have an adviser call you back at a convenient time.

Your home may be repossessed if you do not keep up repayments on your mortgage.