---
title: "First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits"
description: "First-time buyer mortgages in Scotland: 5% deposits, the Home Report and offers over, LBTT relief to £175,000, LIFT and the First Homes Fund."
url: "https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland"
site: "Mortgage Lane"
collection: "mortgages"
date: "2026-10-08"
author: "Joseph Lane"
category: "Mortgages"
reviewed: "2026-10-08"
reading_time: "39 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# First Time Buyer Mortgages Scotland, LBTT, LIFT and Deposits

First-time buyer mortgages in Scotland: 5% deposits, the Home Report and offers over, LBTT relief to £175,000, LIFT and the First Homes Fund.

First-time buyer mortgages in Scotland: 5% deposits, the Home Report and offers over, LBTT relief to £175,000, LIFT and the First Homes Fund.

[LIFT (Low-cost Initiative for First Time Buyers)](https://mortgagelane.com/definitions?term=lift-scheme)

Residential

The Scottish Government's shared equity schemes for first-time buyers and priority groups who cannot afford the whole price of a home. The government funds part of the price and holds that share of the home, and the buyer pays for the rest with a mortgage and deposit.

[Read the full definition of LIFT (Low-cost Initiative for First Time Buyers)](https://mortgagelane.com/definitions?term=lift-scheme)

## Expert advice on first-time buyer mortgages in Scotland

Speak to a Mortgage Lane adviser about your options.

## In short

First-time buyers in Scotland generally borrow on the same mortgages as buyers elsewhere in the UK, usually with at least a 5% deposit, but they buy under Scots law. The lender lends on the lower of the price and the valuation, so any amount offered over the Home Report figure is paid in cash, and first-time buyer relief means no LBTT on the first £175,000.

## What is a first-time buyer mortgage in Scotland?

**A first-time buyer mortgage in Scotland is a residential mortgage for someone who has never owned a home anywhere in the world, secured on the new home by a [standard security](https://mortgagelane.com/definitions#def-standard-security) registered in the Land Register of Scotland.** There is no separate Scottish mortgage product for first-time home buyers. Most lenders that lend in Scotland offer first-time buyers the same fixed, tracker and variable products as elsewhere in the UK, although some lenders do not lend on Scottish property. A mortgage on a home you will live in is a [regulated mortgage](https://mortgagelane.com/definitions#def-regulated-mortgage), assessed on income, outgoings, credit history and deposit under the conduct rules that the Financial Conduct Authority (FCA) sets for mortgages ([FCA Handbook: MCOB](https://handbook.fca.org.uk/handbook/mcob)). The Scottish part is the purchase around the loan: the [Home Report](https://mortgagelane.com/definitions#def-home-report), offers made through a solicitor, [missives](https://mortgagelane.com/definitions#def-missives), settlement, and [Land and Buildings Transaction Tax (LBTT)](https://mortgagelane.com/definitions#def-land-and-buildings-transaction-tax) in place of [stamp duty](https://mortgagelane.com/definitions#def-stamp-duty-land-tax). The government help is different from England's too. Our guide to [first-time buyer mortgages](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide) covers the products, deposits and schemes across the UK, and this page covers what changes in Scotland.

A lender decides who qualifies for its own first-time buyer products and criteria, and Revenue Scotland decides who qualifies for LBTT first-time buyer relief on a stricter test. Someone who owns, or has ever owned, a dwelling in Scotland, the rest of the UK or anywhere else in the world does not qualify, and homes that were gifted, inherited or held jointly count. The buyer must also intend to live in the home as their only or main residence, and on a joint purchase every buyer must meet the test ([Revenue Scotland: LBTT3048 first-time buyer relief](https://revenue.scot/taxes/land-buildings-transaction-tax/lbtt-legislation-guidance/lbtt3001-exemptions-reliefs/lbtt3010-tax-reliefs/lbtt3048-first-time-buyer-relief)).

Mortgage Lane arranges first-time buyer mortgages across Scotland for single buyers and couples, employed and self-employed applicants, contractors and people on probation in a new job, buyers with a [gifted deposit](https://mortgagelane.com/definitions#def-gifted-deposit) or a [Lifetime ISA](https://mortgagelane.com/definitions#def-lifetime-isa), buyers using a shared equity scheme, buyers with past credit problems and first-time landlords. We aim to have your [mortgage in principle](https://mortgagelane.com/definitions#def-agreement-in-principle) in place before your solicitor notes interest in a property, and to test the amount you plan to offer against the lender's valuation rules before the offer goes in.

## First-time buyer mortgage rates in Scotland

**First-time buyer mortgage rates in Scotland are set by each lender in loan to value bands, and lenders generally offer the same products on both sides of the border.** Pricing follows the [loan to value (LTV)](https://mortgagelane.com/definitions#def-loan-to-value), the loan as a percentage of the lower of the price and the valuation, so a first-time buyer in Glasgow and one in Manchester with the same deposit usually see the same products from the same lender. Lower bands generally carry lower rates, each extra 5% of deposit can move a purchase into a cheaper band, and 90% and 95% lending is usually priced above them. Some lenders also run products or incentives for first-time buyers, and these change often.

Comparing lenders means looking past the headline rate to the product fee, the length of any fixed rate and its early repayment charge, and whether the lender will rely on the Home Report's [mortgage valuation](https://mortgagelane.com/definitions#def-mortgage-valuation). An offer over the valuation can also move you into a higher band. Before LBTT, £20,000 of savings is a 10% deposit on a £200,000 valuation, which means a 90% loan. Spend £10,000 of it on an offer £10,000 over, and the £10,000 left is a 5% deposit on the same valuation, so the loan becomes a 95% loan.

**Ready to start viewing in Scotland?** Get in touch with your income, your deposit and the price range you are looking at. A mortgage in principle before your first note of interest shows the selling agent that you can fund an offer.

## First-time buyer mortgage criteria in Scotland

**Lenders assess a first-time buyer in Scotland on the same criteria as anywhere in the UK, and what changes a Scottish case is the Home Report valuation, the tax and the schemes.** The tax, security, schemes and regulation rows rest on published rules, as at October 2026. The other rows describe how lenders differ, with Mortgage Lane's own experience where the firm has a settled position, and the lender's underwriting decides each case. Lenders measure affordability against an [income multiple](https://mortgagelane.com/definitions#def-loan-to-income) and a check of your outgoings, and Scottish income tax rates and bands differ from the rest of the UK, so take-home pay on the same salary can differ.

## First-time buyer mortgage criteria in Scotland

*First-time buyer mortgage criteria in Scotland*

| Criterion | How it works |
| --- | --- |
| Deposit | At least 5% on most first-time buyer products, because most lending stops at 95% loan to value. A larger deposit reaches lower rate bands. Some lenders offer 100% mortgages, and in our experience family help can take a purchase to 100%. |
| Loan to value basis | The lower of the purchase price and the lender's valuation. Any amount agreed above the valuation is paid from the buyer's own money. |
| Income multiple | In our experience 5 times gross income after credit commitments is the standard multiple, up to 6 times for professionals and specialist products. Each lender sets its own. Loans at 4.5 times income or more fall under the Bank of England's limit on high loan to income lending. |
| Affordability | Income, committed outgoings, dependants and the payment at a stressed rate, under the FCA's MCOB rules. Take-home pay reflects Scottish income tax rates. |
| Deposit sources | Savings, a Lifetime ISA or a gift from family with a gift letter. Whether a lender accepts a borrowed deposit, or a gift from outside the family, varies by lender. |
| Employment | Employed and self-employed. Whether a lender accepts a new job or a probation period varies by lender. For fixed-term contract workers, in our experience specialist lenders accept no track record and a probation period, while high street lenders prefer 6 to 12 months. Lenders set their own minimum trading history for the self-employed. |
| Contractors | In our experience a day rate is annualised over 48 weeks, at standard residential loan to value. |
| Credit | A clean file gives the widest choice. Specialist lenders consider defaults, decrees and missed payments, and in our experience adverse credit lending usually stops at around 90%. |
| Valuation | Some lenders accept the mortgage valuation report that comes with many Home Reports, and others instruct their own valuer. A valuation below the price reduces the loan. |
| Property | Houses, tenement and other flats, ex-local authority homes and new builds. Non-standard construction is assessed case by case. |
| Term | In our experience terms run up to 40 years. |
| Security | A standard security registered in the Land Register of Scotland. A shared equity scheme takes its own standard security for the government's share. |
| Tax | First-time buyer relief: no LBTT on the first £175,000 of the price, saving up to £600, with no maximum price. ADS does not apply where neither the buyer nor the buyer's spouse, civil partner or cohabitant owns another dwelling. |
| Government schemes | LIFT Open Market Shared Equity and New Supply Shared Equity, the First Homes Fund of up to £10,000 (which cannot be used with LIFT), and the UK Mortgage Guarantee Scheme on 91% to 95% loans, which excludes shared equity purchases. |
| Regulation | A mortgage on a home you will live in is regulated by the FCA. Most buy to let lending is not. |

The tax, security, schemes and regulation rows are from Revenue Scotland, the LBTT (Scotland) Act 2013, the Conveyancing and Feudal Reform (Scotland) Act 1970, gov.scot, mygov.scot, HM Treasury and the FCA, and the loan to income limit is the Bank of England's, checked 8 October 2026. The income multiple, employment, contractor, credit, term and family help figures are Mortgage Lane's experience, not market rules. The other rows describe how lenders vary; each lender's criteria and underwriting decide a case.

## Types of first-time buyer in Scotland, and how lenders treat each

**Every first-time buyer in Scotland goes through the same purchase, and the cases differ in how the income is evidenced, where the deposit comes from and which scheme applies.**

### Single first-time buyers

A single buyer borrows on one income, so the income multiple and the deposit do more of the work. First-time buyer relief applies in full on a sole purchase, and one Lifetime ISA bonus can go towards the deposit. The Scottish Government's [Low-cost Initiative for First Time Buyers (LIFT)](https://mortgagelane.com/definitions#def-lift-scheme) includes Open Market Shared Equity, for buyers who cannot afford the whole price, which is often the position on one income. Our [single person mortgages](https://mortgagelane.com/mortgages/single-person-mortgages) page covers borrowing on one income in detail, and our [JBSP mortgages](https://mortgagelane.com/mortgages/jbsp-mortgages) page covers adding a parent's income through a [joint borrower sole proprietor](https://mortgagelane.com/definitions#def-joint-borrower-sole-proprietor) mortgage.

### Couples and joint buyers

Joint applicants combine their incomes, which widens the price range, and on a joint mortgage each borrower is responsible for the whole loan. For LBTT relief every buyer must be a first-time buyer. If one of you has owned a home before, anywhere in the world and even as a share of an inherited property, the relief is lost for the whole purchase and the standard bands apply: on a £200,000 home that is £1,100 of LBTT in place of £500. If that buyer still owns a dwelling at the end of the day of the purchase, the 8% [Additional Dwelling Supplement (ADS)](https://mortgagelane.com/definitions#def-additional-dwelling-supplement) can apply to the whole purchase as well, unless it replaces their main residence. For ADS a home owned by the buyer's spouse, civil partner or cohabitant counts as the buyer's, so the same can happen when only one of you buys and the other keeps a home of their own. Tell us about any home either of you owns or has owned before the offer is costed.

### Self-employed and contractor first-time buyers

A self-employed mortgage is assessed on accounts or HMRC tax calculations, and lenders set their own minimum trading history, from one year at some lenders to two or more at others. Company directors are assessed on salary and dividends or on their share of the company's profit, depending on the lender. Some lenders assess a contractor on the annualised day rate, which in our experience means the day rate over 48 weeks of the year. In Scotland the timetable can be short, because a closing date can be set soon after a home comes to market, so gather the evidence before you start viewing. Our [self-employed mortgages](https://mortgagelane.com/mortgages/self-employed-mortgages) page covers each route, and [one year self-employed mortgages](https://mortgagelane.com/mortgages/one-year-self-employed-mortgages) and [contractor mortgages](https://mortgagelane.com/mortgages/contractor-mortgages) cover the narrower cases.

### New jobs, probation and fixed-term contracts

Some lenders accept a first-time buyer who has just started a job, including during a probation period, and others wait until it ends. For fixed-term contract workers, in our experience specialist lenders accept no track record and probation, while high street lenders tend to prefer 6 to 12 months in the role. Our [fixed term contract mortgages](https://mortgagelane.com/mortgages/fixed-term-contract-mortgages) page explains how a contract is assessed.

### Gifted deposits, family help and Lifetime ISAs

Lenders that accept a deposit given by family usually ask for a gift letter confirming that the money is a gift and that the giver takes no share in the home, and they check the giver's identity and where the money came from. Our [gifted deposit mortgages](https://mortgagelane.com/mortgages/gifted-deposit-mortgages) page covers the evidence lenders ask for. Where a gift is not possible, a [family-assisted mortgage](https://mortgagelane.com/definitions#def-family-assisted-mortgage) can use a relative's savings or property as extra security, and in our experience family help can take a purchase to 100%. Our [family help mortgages](https://mortgagelane.com/mortgages/family-help-mortgages) page covers how that works. Buying a home from a relative below its value is a separate route: our [concessionary purchase mortgages](https://mortgagelane.com/mortgages/concessionary-purchase-mortgages) page covers how lenders treat the discount, and our [buying a house from family](https://mortgagelane.com/guides/residential/buying-a-house-from-family) guide covers the family sale.

A Lifetime ISA can go towards a first home costing £450,000 or less, bought with a mortgage at least 12 months after the first payment in, through a conveyancer or solicitor. Savers can pay in up to £4,000 a year, and the government adds a 25% bonus of up to £1,000 a year ([gov.uk: Lifetime ISA](https://www.gov.uk/lifetime-isa)). The government consulted from June to August 2026 on a First Time Buyer ISA to be offered in place of the Lifetime ISA, and as at October 2026 no launch date had been published. Tell us where the deposit is coming from before you offer, so the evidence is ready for your solicitor.

### First-time buyers with past credit problems

Scotland has no county court judgments. The court equivalent is a decree, granted by a sheriff court, and decrees reach the credit files in the same way, alongside defaults, missed payments and a [protected trust deed](https://mortgagelane.com/definitions#def-protected-trust-deed), Scotland's formal arrangement with creditors. Past credit problems narrow the choice of lender, and specialist lenders assess the age and size of each entry and whether it has been paid. In our experience [adverse credit](https://mortgagelane.com/definitions#def-adverse-credit) lending usually stops at around 90% loan to value, so a 10% deposit is a more realistic starting point than 5%. Our [CCJ mortgages](https://mortgagelane.com/mortgages/ccj-mortgages) page covers Scottish decrees, and [mortgages with defaults](https://mortgagelane.com/mortgages/mortgages-with-defaults) covers defaults.

### First-time buyers buying a new build

New build homes in Scotland are usually reserved with the builder and bought on the builder's own missives, often with a settlement date months ahead, so the mortgage offer needs to last until the home is finished or be extended. A new home sold off plan or to its first occupier does not need a Home Report, although the seller must still provide an Energy Performance Certificate. The lender values the home itself and usually asks for a new build warranty. In our experience new builds can be financed up to 95%, and lenders set their own limits for new build flats. New Supply Shared Equity is available on some homes built by housing associations and councils, and the [First Homes Fund](https://mortgagelane.com/definitions#def-first-homes-fund) can be used on a new home as well as an existing one. Our [new build mortgages](https://mortgagelane.com/guides/residential/new-build-mortgages) guide covers new build lending in more detail.

### First-time landlords in Scotland

A first-time buyer who buys a property to let out needs a [buy to let mortgage](https://mortgagelane.com/definitions#def-buy-to-let-mortgage), which fewer lenders offer to buyers who do not own their own home (see [buy to let mortgages for first-time buyers](https://mortgagelane.com/guides/buy-to-let-mortgage-guide/first-time-buyers)). Most buy to let lending is outside FCA regulation. The purchase loses LBTT first-time buyer relief, because the home will not be the buyer's main residence. ADS applies only where the buyer, or the buyer's spouse, civil partner or cohabitant, already owns a dwelling, so where neither owns another property the buyer pays LBTT at the standard rates. Letting in Scotland runs under the [private residential tenancy](https://mortgagelane.com/definitions#def-private-residential-tenancy) and landlord registration, covered on our [buy to let mortgage Scotland](https://mortgagelane.com/insights/buy-to-let-mortgage-scotland) page.

## How buying your first home in Scotland differs

**Four parts of a Scottish purchase change a first-time buyer's mortgage: the Home Report, the offer, the missives and settlement.** Our [mortgages in Scotland](https://mortgagelane.com/mortgages/mortgages-scotland) page covers the same process for home movers, remortgages and buy to let.

### The Home Report valuation before you offer

Most homes for sale in Scotland must have a Home Report from the day they go on the market, and a seller or selling agent must give you a copy within nine days of you asking for it. It has three parts: a single survey with a valuation, a property questionnaire and an energy report ([mygov.scot: Home Report](https://www.mygov.scot/buy-home/home-report)). Only surveyors registered with or authorised to practise by the Royal Institution of Chartered Surveyors can produce the single survey. Many Home Reports also come with a mortgage valuation report that the surveyor can pass to a lender. Some lenders accept it, often only where the surveyor is on their panel, and others instruct their own valuation. Either way you usually see a valuation figure before you offer, which a buyer in England normally learns only after an offer has been accepted.

### Offers over and closing dates on a first purchase

Your solicitor formally notes your interest with the seller. If several people note interest, the seller sets a closing date by which offers must be made ([mygov.scot: making an offer](https://www.mygov.scot/buy-home/make-offer)). Most homes in Scotland are sold by blind bidding, with the seller asking for offers over or around a minimum price, so no buyer sees the others' offers. The offers-over figure is sometimes set below the Home Report valuation, and a winning bid can end up above the valuation. Some homes are sold at a fixed price instead. You may get one chance to bid, which is why the mortgage in principle and the highest offer you can fund need to be settled before the closing date.

### The offer and missives

Your offer is a formal letter from your solicitor. If the seller agrees, their solicitor replies with a qualified acceptance, which accepts the offer subject to conditions, and the solicitors exchange further letters, the missives, until the terms are agreed. Once the missives are concluded you and the seller have a binding contract, and a buyer who pulls out after that can be liable to the seller for damages ([mygov.scot: making an offer](https://www.mygov.scot/buy-home/make-offer)). For that reason a buyer's solicitor normally concludes them only after the lender has issued its mortgage offer.

### Settlement and the LBTT return

Settlement usually happens on the agreed date of entry. Your solicitor collects the loan from the lender and your own contribution, and pays the seller in exchange for the keys and the disposition, the deed that passes ownership to you ([mygov.scot: settlement](https://www.mygov.scot/buy-home/settlement)). Your title and the lender's standard security are registered in the Land Register of Scotland, kept by Registers of Scotland; in Scots law a standard security is the only way to secure a debt over land ([Conveyancing and Feudal Reform (Scotland) Act 1970, section 9](https://www.legislation.gov.uk/ukpga/1970/35/section/9)). The LBTT return goes to Revenue Scotland within 30 days of the day after the effective date, which is usually the date of entry, and a return is needed for a purchase of £40,000 or more even when no tax is due.

## LBTT for first-time buyers in Scotland

**Land and Buildings Transaction Tax replaced Stamp Duty Land Tax in Scotland on 1 April 2015, and first-time buyer relief raises its nil rate band from £145,000 to £175,000, which saves up to £600.** In its 2026 to 2027 Budget the Scottish Government said that all LBTT rates and bands, including the Additional Dwelling Supplement, would stay at their current levels ([gov.scot: LBTT](https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/)). The Scottish relief has no maximum price. First-time buyers' relief from Stamp Duty Land Tax in England and Northern Ireland cannot be claimed where the price is over £500,000, and Wales's Land Transaction Tax has no first-time buyer relief.

## LBTT residential rates and first-time buyer relief

*LBTT residential rates and first-time buyer relief*

| Part of the price | Standard rate | First-time buyer rate |
| --- | --- | --- |
| Up to £145,000 | 0% | 0% |
| £145,001 to £175,000 | 2% | 0% |
| £175,001 to £250,000 | 2% | 2% |
| £250,001 to £325,000 | 5% | 5% |
| £325,001 to £750,000 | 10% | 10% |
| Over £750,000 | 12% | 12% |

Revenue Scotland's residential rates and bands for purchases from 1 April 2021, which the Scottish Government kept unchanged for 2026 to 2027, checked 8 October 2026. The Additional Dwelling Supplement of 8% of the whole price is added where it applies; it does not apply where neither the buyer nor the buyer's spouse, civil partner or cohabitant owns another dwelling.

Each rate applies only to the part of the price within its band. On a £200,000 home, a buyer without the relief pays 2% of the £55,000 above £145,000, which is £1,100, and a first-time buyer pays 2% of the £25,000 above £175,000, which is £500. The saving is £600 at any price above £175,000.

## LBTT on five prices, with and without first-time buyer relief

*LBTT on five prices, with and without first-time buyer relief*

| Price | LBTT at the standard rates | LBTT for a first-time buyer | Saving |
| --- | --- | --- | --- |
| £180,000 | £700 | £100 | £600 |
| £200,000 | £1,100 | £500 | £600 |
| £250,000 | £2,100 | £1,500 | £600 |
| £300,000 | £4,600 | £4,000 | £600 |
| £400,000 | £13,350 | £12,750 | £600 |

Worked with the calculator on this page from Revenue Scotland's residential bands for 2026 to 2027. Illustrative figures, not tax advice; the solicitor completes the LBTT return.

Your solicitor claims the relief on the LBTT return, and it must be claimed on the first return for the purchase or on an amendment to it. It is not available where the Additional Dwelling Supplement is payable. A first-time buyer usually pays no ADS, because it is charged only where the buyer owns another dwelling at the end of the day of the purchase. For this test a dwelling owned by the buyer's spouse, civil partner or cohabitant counts as the buyer's, unless a married couple or civil partners have separated ([LBTT (Scotland) Act 2013, schedule 2A](https://www.legislation.gov.uk/asp/2013/11/schedule/2A/paragraph/6)). A buyer whose partner keeps a home can therefore pay ADS and lose the relief. ADS is 8% of the whole price on purchases of £40,000 or more, and it applies to second homes and to buy to let bought by someone who already owns a home ([Revenue Scotland: ADS](https://revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement-ads)). Mortgage Lane does not give tax advice: your solicitor completes the return, and Revenue Scotland's guidance sets out the full conditions.

A first-time buyer whose spouse, civil partner or cohabitant keeps a home can be charged the 8% Additional Dwelling Supplement on the whole price and lose first-time buyer relief: on a £200,000 home, £16,000 on top of £1,100 of LBTT.

## Schemes for first-time buyers in Scotland

**Scotland's government help for first-time buyers is shared equity: the Scottish Government funds part of the price and holds that share of the home.** As at October 2026 the open schemes are LIFT and the First Homes Fund, which cannot be used together. The UK [Mortgage Guarantee Scheme](https://mortgagelane.com/definitions#def-mortgage-guarantee-scheme) and the Lifetime ISA apply in Scotland too. The Help to Buy (Scotland) schemes are closed ([gov.scot: Help to Buy (Scotland)](https://www.gov.scot/policies/homeowners/help-to-buy/)), and the earlier First Home Fund, which ran from December 2019 to March 2022, is closed too. England's [First Homes](https://mortgagelane.com/definitions#def-first-homes) scheme does not apply in Scotland. Shared equity differs from [shared ownership](https://mortgagelane.com/definitions#def-shared-ownership), where the buyer owns part of the home and pays rent on the rest, which our [shared ownership mortgages](https://mortgagelane.com/mortgages/shared-ownership-mortgages) page covers.

### LIFT Open Market Shared Equity

Under LIFT Open Market Shared Equity (OMSE), the buyer usually funds 60% to 90% of the price with a mortgage and their own deposit, and the Scottish Government holds the rest under a shared equity agreement. The buyer has the whole title to the home, and the government's share is protected by a standard security ([mygov.scot: how OMSE works](https://www.mygov.scot/open-market-shared-equity-scheme/how-it-works)). You can buy more of the home later, by at least 5% in a year, and when you sell, the government receives its percentage of the selling price ([mygov.scot: OMSE after buying](https://www.mygov.scot/open-market-shared-equity-scheme/after-buying)). The mortgage must be a [repayment mortgage](https://mortgagelane.com/definitions#def-repayment-mortgage), and an applicant who can afford more than 90% of the price is not eligible. The government's share depends on your means. In the Scottish Government's own example the buyer keeps £5,000 of savings, puts 90% of the rest into the purchase and takes the largest mortgage they can get, and the government funds the balance ([gov.scot: OMSE buyer information](https://www.gov.scot/publications/open-market-shared-equity-omse-scheme-buyer-information-2/pages/7/)).

The scheme opened for applications on 13 August 2026. It is open to first-time buyers on low to moderate incomes and to priority access groups, such as social renters, disabled people, people aged 60 and over, members of the armed forces and veterans, where they cannot afford the full price of a home ([gov.scot: Supporting people to buy their first home](https://www.gov.scot/news/supporting-people-to-buy-their-first-home/)). Funding is limited, and approved purchases for 2026 to 2027 must settle by 31 March 2027 ([Link Housing: LIFT](https://www.linkhousing.org.uk/lift)). Link Housing, the administering agent, assesses the application and issues a passport letter valid for up to 12 weeks. The highest price you can offer is the threshold for the area and size of home, and you can pay over the valuation from your own funds as long as the price stays within that threshold ([gov.scot: OMSE passport letter](https://www.gov.scot/publications/open-market-shared-equity-scheme-administrative-procedures-4/pages/9/)). The government's share is worked on the valuation or the price, whichever is lower.

Thresholds for 2026 to 2027 were published on 11 August 2026 and are set at the median house price for each council area, or part of one, and each home size ([gov.scot: OMSE thresholds](https://www.gov.scot/publications/open-market-shared-equity-thresholds/)). Size is counted in apartments: the habitable rooms, not counting the kitchen, bathroom, box rooms, utility rooms, hallways or glass conservatories, so a flat with two bedrooms and a living room is a 3 apartment home.

## LIFT Open Market Shared Equity price thresholds for 2026 to 2027, selected areas

*LIFT Open Market Shared Equity price thresholds for 2026 to 2027, selected areas*

| Area | 2 apartment | 3 apartment | 4 apartment | 5 apartment | 6 apartment |
| --- | --- | --- | --- | --- | --- |
| Aberdeen City | £105,000 | £140,000 | £150,000 | £200,000 | £255,000 |
| Dundee City | £90,000 | £120,000 | £160,000 | £230,000 | £275,000 |
| City of Edinburgh | £185,000 | £235,000 | £325,000 | £415,000 | £585,000 |
| Fife, South | £95,000 | £125,000 | £180,000 | £270,000 | £330,000 |
| Glasgow City | £135,000 | £170,000 | £205,000 | £290,000 | £410,000 |
| Highland, Central Mainland | £130,000 | £185,000 | £225,000 | £280,000 | £350,000 |
| Perth and Kinross | £105,000 | £155,000 | £215,000 | £275,000 | £335,000 |
| West Lothian | £130,000 | £170,000 | £205,000 | £245,000 | £355,000 |

Selected rows from gov.scot's Open Market Shared Equity thresholds table, updated 11 August 2026 and checked 8 October 2026. The full table covers every council area, with some divided into parts. The threshold is the most you can offer, including any amount paid over the valuation.

### New Supply Shared Equity

New Supply Shared Equity (NSSE) uses the same structure on new homes sold by housing associations and councils. The buyer usually pays 60% to 80% of the price, the Scottish Government holds the rest under a shared equity agreement protected by a standard security, and the local council or social landlord assesses whether you qualify ([mygov.scot: NSSE](https://www.mygov.scot/new-supply-shared-equity-scheme/how-it-works)). It is open to first-time buyers and the same priority groups, and to some people who have owned a home before and had a significant change in circumstances.

### The First Homes Fund

The First Homes Fund opened on 24 June 2026 and gives first-time buyers up to £10,000 towards a home worth up to £300,000 ([gov.scot: First Homes Fund, how to apply](https://www.gov.scot/publications/first-homes-fund-how-to-apply/)). In return the Scottish Government takes an equity stake, worked as a percentage of the value or the buying price, whichever is lower, so £10,000 towards a £200,000 home is a 5% stake. There is no interest or monthly payment on the stake. You need a mortgage covering at least 25% of the price, or of the valuation if lower, and you apply once your offer has been accepted. You can buy back the stake in steps of 5% or more, and on a sale the government receives its percentage of the sale price or the current value, whichever is higher. The mortgage must be a repayment mortgage, the home must be the only residence of everyone buying it, and it cannot be a buy to let. The fund cannot be used together with another scheme that helps you buy a home, such as LIFT, although a Lifetime ISA can still go towards the deposit ([mygov.scot: First Homes Fund](https://www.mygov.scot/first-homes-fund/before-you-apply)). An open application to another Scottish Government shared equity scheme has to be withdrawn before you apply ([gov.scot: First Homes Fund eligibility](https://www.gov.scot/publications/first-homes-fund-how-to-apply/pages/eligibility/)). A successful application brings an award letter valid for three months, and applications go through Link Housing.

### The Mortgage Guarantee Scheme

The UK government's Mortgage Guarantee Scheme has been permanently available since July 2025. It supports participating lenders' 91% to 95% loan to value mortgages for first-time buyers and home movers throughout the UK, including Scotland ([HM Treasury: 2025 Mortgage Guarantee Scheme](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme)). The guarantee is between the government and the lender, so the borrower takes an ordinary mortgage. The scheme rules require a repayment mortgage on a home a borrower will live in, and they measure value as the valuation or, if lower, the price. They leave out purchases made through a shared ownership or shared equity scheme, so a purchase through LIFT or the First Homes Fund is outside the scheme ([HM Treasury: scheme rules](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme/2025-mortgage-guarantee-scheme-rules-accessible)). The rules also exclude borrowers they class as credit-impaired.

## How a first-time buyer mortgage is arranged in Scotland

1. **Budget and mortgage in principle.** Income, deposit and credit file checked, a mortgage in principle obtained, and the highest offer you can fund worked out on the basis that the loan is set by the valuation wherever the price is higher.
2. **Viewing and note of interest.** The Home Report read for its valuation and condition ratings, any scheme checked, such as a LIFT passport letter, and your solicitor instructed to note interest.
3. **The offer.** The offer amount set against your deposit, the cash you can add above the valuation and the LBTT, and your solicitor's offer submitted by any closing date.
4. **Application and valuation.** Once the offer is accepted, the full application goes to the lender, which relies on the Home Report's mortgage valuation or instructs its own. A First Homes Fund application also goes in at this stage.
5. **Mortgage offer, then missives.** The lender issues its mortgage offer, your solicitor concludes the missives and reports to the lender on the title.
6. **Settlement.** Funds released on the date of entry, your title and the standard security registered, and the LBTT return filed with first-time buyer relief claimed.

## The offers-over gap: what an offer above valuation costs a first-time buyer

**In Scotland the price a first-time buyer offers and the figure the lender lends against can be two different numbers, and the difference is paid in cash.**

### Step 1. The lender lends on the lower figure

Loan to value is worked out on the lower of the price and the valuation, the same basis the Mortgage Guarantee Scheme rules use. Take an illustrative case, not a product or an offer: the Home Report values a flat at £200,000, and a single first-time buyer on £40,000 a year with no other credit wins the closing date at £210,000. At 5 times income, the standard multiple in our experience, the income supports £200,000, so the loan to value limit decides the case. A lender relying on that valuation lends up to 95% of £200,000, which is £190,000, and the extra £10,000 of price does not raise the loan. The table compares three outcomes.

## Cash needed in three outcomes on a £200,000 Home Report valuation

*Cash needed in three outcomes on a £200,000 Home Report valuation*

| Outcome | Price | Valuation the lender uses | Loan at 95% | Deposit and amount over valuation | LBTT, first-time buyer | Total cash before fees |
| --- | --- | --- | --- | --- | --- | --- |
| Offer at the Home Report value | £200,000 | £200,000 | £190,000 | £10,000 | £500 | £10,500 |
| Offer £10,000 over, valuation stays at £200,000 | £210,000 | £200,000 | £190,000 | £20,000 | £700 | £20,700 |
| Offer £10,000 over, lender's valuer agrees £210,000 | £210,000 | £210,000 | £199,500 | £10,500 | £700 | £11,200 |

Illustrative arithmetic on hypothetical figures, worked with the calculator on this page, using Revenue Scotland's residential LBTT bands with first-time buyer relief for 2026 to 2027. Fees, the solicitor's costs and registration dues come on top. Not an offer of finance.

### Step 2. The cash effect

The offer £10,000 over the valuation adds £10,200 to the cash needed on the day: the £10,000 above the valuation and £200 of extra LBTT on the higher price. None of it can be borrowed from this lender, because the loan stays at £190,000, which costs £1,043.31 a month over 30 years at 5.2%, the illustrative rate used across our guides and not a product rate. A buyer with £10,500 of savings has exactly the cash for the first purchase before fees, and would be £10,200 short on the second.

The third row shows why the valuer's figure matters. If the lender's own valuer agrees £210,000, the loan rises to £199,500 and the cash needed falls back to £11,200, with a monthly payment of £1,095.48. A valuation can also come in below the Home Report figure, and the loan then falls with it; our guide to a [mortgage declined after valuation](https://mortgagelane.com/mortgages/mortgage-declined-on-valuation) covers what can happen next.

### Step 3. Where the extra can come from

The amount over the valuation has to come from more savings or a larger family gift. With £30,000 of savings the same buyer could offer £219,000 on the £200,000 valuation and have £120 left before fees: £10,000 of deposit, £19,000 over and £880 of LBTT, because each £1,000 over the valuation also adds £20 of LBTT once the price is above £175,000. A buyer with exactly 5% of the valuation saved has no room to offer over it at all.

### Step 4. LIFT buyers

Under LIFT Open Market Shared Equity the government's share is worked on the valuation, and any amount paid over it comes from the buyer's own money. Take a buyer on £30,000 a year, whose income supports £150,000 at 5 times and who could not buy the flat alone: at £210,000 they would need £60,700 in cash. If the share comes to 20% once the largest mortgage they can get and the savings the scheme expects are counted, the Scottish Government contributes £40,000 and the mortgage needed falls to £150,000, which costs £823.67 a month on the same illustrative terms. The cash for the £210,000 offer is still £20,700, made up of the 5% deposit on the valuation, the £10,000 over and the LBTT, which is how the Scottish Government's own example treats a purchase above valuation. Our illustration works the LBTT on the full price, and your solicitor confirms the figure on a shared equity purchase. The offer also has to sit within the threshold: £210,000 is above the 3 apartment threshold in Glasgow City (£170,000) and within it in the City of Edinburgh (£235,000).

### What decides the case

The Home Report gives a Scottish first-time buyer a valuation before the offer goes in. The highest offer you can fund is about the valuation plus whatever cash is left after the deposit on that valuation, the LBTT and the fees, and the mortgage in principle should reflect that figure before the closing date. You can change the deposit and the scheme, while the valuation, and the lender that relies on it, decide how much of the price can be borrowed. Borrowing at 95% and 90% loan to value is covered on our [95% mortgages](https://mortgagelane.com/mortgages/95-percent-mortgages) and [90% LTV mortgages](https://mortgagelane.com/mortgages/90-ltv-mortgages) pages.

## Related topics

- [2026](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide)Guide[The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide)The complete first-time buyer guide: deposits, 95% and 100% mortgages, JBSP and gifted deposits, concessionary purchases, Shared Ownership, First Homes, Right to Buy and every devolved scheme.[Read more about The Complete First-Time Buyer Mortgage Guide](https://mortgagelane.com/guides/first-time-buyer-mortgage-guide)
- [2026](https://mortgagelane.com/mortgages/mortgages-scotland)Mortgage[Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland)Getting a mortgage in Scotland: Home Report valuations, offers over, missives, LBTT and the 8% ADS, letting under Scottish law, and a calculator for the tax.[Read more about Mortgages in Scotland, Home Reports, LBTT and ADS Calculator](https://mortgagelane.com/mortgages/mortgages-scotland)
- [2026](https://mortgagelane.com/mortgages/jbsp-mortgages)Mortgage[JBSP Mortgages, Joint Borrower Sole Proprietor](https://mortgagelane.com/mortgages/jbsp-mortgages)JBSP mortgages explained: family income on the loan, not the title. How affordability, term and stamp duty work, which lenders offer it, and the exit.[Read more about JBSP Mortgages, Joint Borrower Sole Proprietor](https://mortgagelane.com/mortgages/jbsp-mortgages)

## First-time buyer mortgage calculator for Scotland

The calculator shows the cash a first-time buyer in Scotland needs on the day, with the loan based on the lower of the price and the valuation, LBTT with first-time buyer relief and any LIFT share. The starting figures are the illustration on this page: a £200,000 Home Report valuation, an offer £10,000 over, £40,000 of income and £10,500 of savings. Enter your own figures, and move the amount offered over the valuation to see how the cash needed changes.

Explore your borrowing

Start again

Enter your figures in pounds. Your estimate updates as you go.

Indicative maximum loan

\-

Enter your figures to see an estimate.

Loan to value

[Discuss your options](https://mortgagelane.com/contact)

Indicative estimate only, subject to lender criteria, affordability and valuation. Lenders differ on the valuation they rely on and on how they treat a shared equity purchase, and LIFT and the First Homes Fund carry their own eligibility checks. LBTT is worked on the full price at Revenue Scotland's residential rates for 2026 to 2027, without the Additional Dwelling Supplement, and is not tax advice. This is not a mortgage offer. Your home may be repossessed if you do not keep up repayments on your mortgage.

## Frequently asked questions about first-time buyer mortgages in Scotland

**Q: Can a first-time buyer get a mortgage in Scotland?**

faq-id: can-a-first-time-buyer-get-a-mortgage-in-scotland

Yes. A first-time buyer in Scotland can borrow from UK lenders on the same products and criteria as elsewhere in the UK, usually with a deposit of at least 5%. The purchase itself runs under Scots law: the seller provides a Home Report, offers go through a solicitor, the contract is formed by missives, and the tax is Land and Buildings Transaction Tax (LBTT), with first-time buyer relief on the first £175,000. The lender lends on the lower of the price and the valuation, so any amount offered above the valuation is paid in cash.

**Q: How much deposit does a first-time buyer need in Scotland?**

faq-id: how-much-deposit-does-a-first-time-buyer-need-in-scotland

Most first-time buyers in Scotland need a deposit of at least 5%, because most lending stops at 95% loan to value. The 5% is worked on the lower of the purchase price and the valuation, and any amount offered above the Home Report valuation is added to it from your own money. On a flat valued at £200,000 and bought for £210,000, that means a £10,000 deposit plus the £10,000 over, before LBTT and fees. With past credit problems, a 10% deposit is a more realistic starting point on the cases we arrange.

**Q: How do you get a mortgage as a first-time buyer in Scotland?**

faq-id: how-do-you-get-a-mortgage-as-a-first-time-buyer-in-scotland

Start with a mortgage in principle before your solicitor notes interest in a property, and check at the same time whether you qualify for first-time buyer relief and for a scheme, such as a LIFT passport letter. Read the Home Report valuation, and set your offer against the cash you have beyond a deposit on that valuation and the LBTT. Your solicitor submits the offer by any closing date. Once it is accepted you apply in full, and a First Homes Fund application, if you are using the fund, goes in at the same stage. The lender values the property or relies on the Home Report's mortgage valuation and issues its offer, your solicitor concludes the missives, and the relief is claimed on the LBTT return when the purchase settles.

**Q: What is the Home Report and how does it affect my mortgage?**

faq-id: what-is-the-home-report-and-how-does-it-affect-my-mortgage

The Home Report is the pack most homes for sale in Scotland must have from the day they go on the market: a single survey with a valuation, a property questionnaire and an energy report, often with a separate mortgage valuation report for lenders. A seller or selling agent must give you a copy within nine days of being asked. For a first-time buyer it means you see a valuation before you offer. Lenders lend on the lower of the valuation and the price, so with a 5% deposit on a £200,000 valuation, at a lender that relies on it, every pound offered above £200,000 is paid in cash. Some lenders instruct their own valuer instead, so ask which lenders will rely on the Home Report before the closing date.

**Q: What does offers over mean in Scotland?**

faq-id: what-does-offers-over-mean-in-scotland

Offers over means the seller invites offers above a stated figure. Most Scottish homes are sold by blind bidding, with a closing date set if several buyers note interest. The figure can be below the Home Report valuation, and a winning bid can end up above the valuation. A lender bases the loan on the lower of the price and the valuation, and any part of an offer above the valuation is paid from your own money. A flat valued at £200,000 and bought for £210,000 with a 95% mortgage needs £20,000 in cash plus LBTT, against £10,000 at the valuation.

**Q: Do first-time buyers pay LBTT in Scotland?**

faq-id: do-first-time-buyers-pay-lbtt-in-scotland

First-time buyers in Scotland pay Land and Buildings Transaction Tax (LBTT) only on the part of the price above £175,000, because first-time buyer relief raises the nil rate band from £145,000. The relief saves up to £600 and has no maximum price, unlike first-time buyers' relief from stamp duty in England and Northern Ireland, which stops at £500,000. A £200,000 home costs a first-time buyer £500 of LBTT, against £1,100 without the relief ([Revenue Scotland: residential rates](https://revenue.scot/taxes/land-buildings-transaction-tax/residential-property)). The Scottish Government kept the rates and bands unchanged for 2026 to 2027 ([gov.scot: LBTT](https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/)).

**Q: Who counts as a first-time buyer for LBTT relief?**

faq-id: who-counts-as-a-first-time-buyer-for-lbtt-relief

For Land and Buildings Transaction Tax (LBTT) relief, a first-time buyer is someone who does not own and has never owned a dwelling in Scotland, the rest of the UK or anywhere else in the world. Homes that were gifted or inherited count, and so does a home held jointly. The buyer must also intend to live in the home as their only or main residence, so a buy to let purchase does not qualify. Where there is more than one buyer, every buyer must meet all the conditions, and the relief is not available on a purchase that attracts the Additional Dwelling Supplement ([Revenue Scotland: LBTT3048](https://revenue.scot/taxes/land-buildings-transaction-tax/lbtt-legislation-guidance/lbtt3001-exemptions-reliefs/lbtt3010-tax-reliefs/lbtt3048-first-time-buyer-relief)).

**Q: Is Help to Buy available in Scotland?**

faq-id: is-help-to-buy-available-in-scotland

No. The Help to Buy (Scotland) schemes are closed, and so is the original First Home Fund, which ran from December 2019 to March 2022. Schemes in England, such as the Help to Buy equity loan and First Homes, never applied in Scotland. As at October 2026 the Scottish Government's help for first-time buyers is shared equity, where it funds part of the price and holds that share of the home: LIFT Open Market Shared Equity, New Supply Shared Equity and the First Homes Fund, open since 24 June 2026. The UK Mortgage Guarantee Scheme and the Lifetime ISA also apply in Scotland.

**Q: What help is there for first-time buyers in Scotland?**

faq-id: what-help-is-there-for-first-time-buyers-in-scotland

As at October 2026, first-time buyers in Scotland can use LIFT Open Market Shared Equity, which opened for 2026 to 2027 applications on 13 August 2026 and lets the Scottish Government hold 10% to 40% of a home priced within local thresholds. New Supply Shared Equity covers some housing association and council new builds. The First Homes Fund, open since 24 June 2026, adds up to £10,000 towards a home worth up to £300,000 in return for an equity stake, and cannot be used together with LIFT. Land and Buildings Transaction Tax relief means no tax on the first £175,000 of the price, and the UK Mortgage Guarantee Scheme and the Lifetime ISA also apply in Scotland.

**Q: What is the LIFT scheme in Scotland?**

faq-id: what-is-the-lift-scheme-in-scotland

LIFT, the Low-cost Initiative for First Time Buyers, is the Scottish Government's shared equity programme. Under Open Market Shared Equity the buyer usually funds 60% to 90% of a home's price with a repayment mortgage and deposit, and the government holds the rest under an agreement secured by a standard security. You can buy more of the home later, and on a sale the government receives its percentage of the selling price. The home must be priced within the threshold for its area and size, and any amount paid over the valuation comes from your own funds. New Supply Shared Equity works the same way on some new homes.

**Q: What is the First Homes Fund in Scotland?**

faq-id: what-is-the-first-homes-fund-in-scotland

The First Homes Fund is a Scottish Government shared equity scheme that opened on 24 June 2026. It gives first-time buyers up to £10,000 towards a home worth up to £300,000, new or existing, and in return the government takes a stake worked as a percentage of the value or price, whichever is lower. There is no interest or monthly payment on the stake, and on a sale the government receives its percentage of the sale price or the current value, whichever is higher. You need a mortgage covering at least 25% of the price, and you apply once your offer is accepted ([gov.scot: First Homes Fund](https://www.gov.scot/publications/first-homes-fund-how-to-apply/)). It cannot be combined with LIFT or another scheme that helps you buy a home ([mygov.scot: before you apply](https://www.mygov.scot/first-homes-fund/before-you-apply)).

**Q: Can I use a Lifetime ISA to buy in Scotland?**

faq-id: can-i-use-a-lifetime-isa-to-buy-in-scotland

Yes. A Lifetime ISA can go towards a first home in Scotland on the same terms as elsewhere: the home must cost £450,000 or less, and you buy it with a mortgage, at least 12 months after your first payment in, through a conveyancer or solicitor. You can save up to £4,000 a year, and the government adds a 25% bonus of up to £1,000 a year ([gov.uk: Lifetime ISA](https://www.gov.uk/lifetime-isa)). The money counts towards your deposit. The government has consulted on a First Time Buyer ISA to be offered in place of the Lifetime ISA, and as at October 2026 no launch date had been announced.

**Q: Does the Mortgage Guarantee Scheme apply in Scotland?**

faq-id: does-the-mortgage-guarantee-scheme-apply-in-scotland

Yes. The UK government's Mortgage Guarantee Scheme covers residential property throughout the United Kingdom, including Scotland. It has been permanently available since July 2025 and supports participating lenders' 91% to 95% loan to value mortgages for first-time buyers and home movers. The loan must be a repayment mortgage on a home the borrower will live in, and the rules leave out purchases made through a shared ownership or shared equity scheme, so a purchase using LIFT or the First Homes Fund falls outside it. The borrower takes an ordinary mortgage, and the lender's own criteria still apply ([HM Treasury: 2025 Mortgage Guarantee Scheme](https://www.gov.uk/government/publications/2025-mortgage-guarantee-scheme)).

**Q: Can I get a 100% mortgage as a first-time buyer in Scotland?**

faq-id: can-i-get-a-100-mortgage-as-a-first-time-buyer-in-scotland

Some lenders offer 100% mortgages to first-time buyers in Scotland, and some of these are assessed on a record of rent paid on time in place of a deposit, with the lender's own income, property and credit conditions. In our experience family help can also take a purchase to 100%, using a relative's savings or property as extra security. Loan to value is worked on the lower of the price and the valuation, so a 100% mortgage still leaves any amount offered above the Home Report valuation to be paid in cash, along with LBTT and fees. The Mortgage Guarantee Scheme does not cover loans above 95%.

**Q: How much can a first-time buyer borrow in Scotland?**

faq-id: how-much-can-a-first-time-buyer-borrow-in-scotland

In our experience lenders lend up to about 5 times gross annual income after credit commitments, and up to 6 times for professionals and on some specialist products, subject to an affordability assessment of your outgoings at a stressed interest rate. Each lender sets its own multiple. The deposit and the valuation also limit the loan: at 95% loan to value, a £200,000 valuation supports at most £190,000 whatever the income. Scottish income tax rates and bands differ from the rest of the UK, so take-home pay on the same salary can differ, and lenders' affordability models work from take-home pay.

**Q: When should a first-time buyer get a mortgage in principle in Scotland?**

faq-id: when-should-a-first-time-buyer-get-a-mortgage-in-principle-in-scotland

Get one before your solicitor notes interest in a property. A closing date can be set soon after a home comes to market, and a selling agent may ask for evidence that you can fund the purchase when the offer goes in. A mortgage in principle shows the likely loan from a lender, based on your income, outgoings and a credit check, so you can set your highest offer against it and the Home Report valuation. It is an indication only, and the lender still values the property and underwrites the full application once your offer is accepted.

**Q: What are missives in a Scottish property purchase?**

faq-id: what-are-missives-in-a-scottish-property-purchase

Missives are the letters exchanged between the buyer's and seller's solicitors that form the contract for a Scottish property purchase. The seller usually replies to the buyer's offer with a qualified acceptance setting out their conditions, and the solicitors exchange missives until the terms are agreed. Once the concluding missive is sent the contract is binding, usually ahead of the date of entry, when settlement takes place, and a buyer who withdraws after that can be liable to the seller for damages. Mortgage and development lenders release their funds at settlement, so the lender's offer and timetable need to be in place before missives are concluded.

**Q: Can I get a first-time buyer mortgage in Scotland if I am self-employed?**

faq-id: can-i-get-a-first-time-buyer-mortgage-in-scotland-if-i-am-self-employed

Yes. Self-employed first-time buyers in Scotland are assessed on the same rules as elsewhere in the UK, using accounts or HMRC tax calculations. Lenders set their own minimum trading history, from one year at some lenders to two or more at others. Sole traders are usually assessed on net profit, and company directors on salary and dividends or on their share of the company's profit, depending on the lender. Contractors on a day rate may be assessed on the annualised rate, which in our experience is the day rate over 48 weeks. Gather the evidence before viewing, because a Scottish closing date can leave little time.

**Q: Can I get a first-time buyer mortgage in Scotland with bad credit?**

faq-id: can-i-get-a-first-time-buyer-mortgage-in-scotland-with-bad-credit

Yes, although the choice of lender is narrower. Specialist lenders consider first-time buyers in Scotland with defaults, decrees (the Scottish equivalent of county court judgments), missed payments or a past protected trust deed, and assess the age and size of each entry and whether it has been paid. In our experience adverse credit lending usually stops at around 90% loan to value, so a 10% deposit is a more realistic starting point than 5%. The Mortgage Guarantee Scheme, which supports 91% to 95% loans, excludes borrowers its rules class as credit-impaired.

**Q: What happens if the valuation is lower than my offer in Scotland?**

faq-id: what-happens-if-the-valuation-is-lower-than-my-offer-in-scotland

The lender bases the loan on the lower figure, so if its valuation comes in below your accepted offer the loan falls. You can make up the difference from your own money, renegotiate the price with the seller or withdraw, and any of these needs to happen before the missives are concluded. A buyer who has offered £210,000 on a flat the lender values at £200,000 can borrow at most £190,000 at 95%, so £20,000 plus LBTT is needed in cash. Reading the Home Report valuation before you offer, and asking which lenders will rely on it, is the main protection against a surprise.

**Q: Do first-time buyers pay the Additional Dwelling Supplement in Scotland?**

faq-id: do-first-time-buyers-pay-the-additional-dwelling-supplement-in-scotland

Not usually. The Additional Dwelling Supplement (ADS) is charged where, at the end of the day of the purchase, the buyer owns more than one dwelling and is not replacing their only or main residence. For that test, a dwelling owned by the buyer's spouse, civil partner or cohabitant, or by a child under 16 of either of them, counts as the buyer's own unless a married couple or civil partners have separated ([LBTT (Scotland) Act 2013, schedule 2A](https://www.legislation.gov.uk/asp/2013/11/schedule/2A/paragraph/6)). A first-time buyer whose partner keeps a home can therefore pay ADS, and first-time buyer relief is then lost. ADS is 8% of the whole price from £40,000, so on a £200,000 home it is £16,000 on top of £1,100 of LBTT ([Revenue Scotland: ADS](https://revenue.scot/taxes/land-buildings-transaction-tax/additional-dwelling-supplement-ads)).

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Published: 2026-10-08

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/mortgages/first-time-buyer-mortgages-scotland