Our guide to Shared Equity (Scotland)
Find out what you need to know about the Scottish housing scheme with this guide.
Frequently asked questions (FAQs)
Which lenders offer Shared Equity mortgages?
As of 1st November 2019 there are 12 mortgage lenders that offer mortgages for the Open Market Shared Equity Scheme:
Bank of Scotland
Capital Credit Union
Glasgow Credit Union
Leeds Building Society
Scottish Building Society
Can you remortgage on the Shared Equity scheme?
To remortgage your home, you’ll need to contact the association or local council who handled your purchase.
Despite the Scottish Government owning a stake in the property, you'll be solely responsible for any administrative costs.
Can you rent out your home on the Shared Equity scheme?
Typically you’re not allowed to sublet properties bought using one of the schemes.
Your property has to be used as your primary residence.
Do I have the same responsibilities as other buyers when buying with the government?
Yes. You’re responsible for the same costs as any other homeowner - council tax, insurance, repairs, etc.
What happens if I want to sell?
Should you choose to sell, the total you’re due will vary depending on the following:
The price at which you sell your house
The size of your equity stake
The amount you’ve paid towards the mortgage
So, if you have a 60% share of your house, you’ll get 60% of the price of sale when you sell it and the Scottish Government gets the remaining 40%.
This means you can also benefit from any increase in the value of your home since you bought it. If you paid £200,000 and go on to sell at £220,000, you’ll still be entitled to the same equity stake percentage you went in with. In this case 60%. Likewise, the government would also benefit in the same way.
How does the scheme differ from Help to Buy?
Unlike the Help to Buy scheme, with Shared Equity the Government can purchase a larger share of the property and you don’t need to put down a deposit if you prefer not to.
However, there are tighter rules around eligibility as you would need to prove that you wouldn’t be able to afford a suitable home without help.
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Your home could be repossessed if you don't keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
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