LIFT mortgage explained

LIFT is the Low-Cost Initiative for First-Time buyers. It is a shared equity scheme for Scotland, run by the Scottish government. The scheme has been introduced to help those on low incomes obtain who want to own a home but can’t due to their low financial resources they aren’t able to but at the current market prices.

How the scheme works

The person who takes part in the scheme will buy a share of the property from one of the registered social landlords who have signed up to the scheme. Check out the Scottish Government website for details of where the scheme is available. The equity generally will be between 51 and 80 per cent.

If you are in an eligible area you can choose any property where you are able to put up the equity stake whether the home is old or a new build. You will be assessed by a housing association as to whether you meet the low income requirements. You will have to contribute the maximum mortgage you can borrow plus and personal savings, shares or investments to the house purchase.

The government will give a grant to the social landlord and take an equity stake in the property for the remainder. The home will be yours and it is up to you whatever you do with it. If you want to sell it then you simply pay the government back their equity stake whatever the sale price when you sell.

You will be responsible for all costs associated to the house including valuation fees, legal fees, repairs, maintenance, insurance, household bills including the mortgage payment of course. You won’t have to pay any deposit or any rent for the part of the home you don’t own so you keep complete control of the property.

I have yet to buy my first property by certainly after researching the lift mortgage scheme extensively think it is a fantastic way to be able to afford a home. You’re free to own the home without hassle from another partner and don’t have to answer to anyone regarding changes made to the property.