A new Scottish Government loan fund, overseen by The Highlands Small Communities Housing Trust (HSCHT), is to be introduced in an effort to fill a gap in the lending market. It will help self-builders to reach completion, where they can then access a traditional mortgage and pay back the loan.
Margaret Burgess MSP announced the £4 million fund at this year’s Rural Housing Scotland Conference.
The new revolving fund will allow individuals and families to borrow up to £150,000 in agreed stage payments. Those who own or part-own a home already can apply, though they will need to sell their interest in that property.
Burgess is keen to emphasise her efforts to boost Scottish self-build numbers. “Self and custom build offers an important means of increasing housing supply while allowing customers input into the design of their new home. We understand the lending difficulties experienced by households looking to build, and that’s why we are piloting this £4 million self-build loan fund, which we will monitor and review following the pilot’s two year lifespan,” says Burgess.
The Highland Self-Build Loan Fund (HSBLF) will favour applicants with shorter build programmes in order to provide funding to a greater number of projects and those with greater housing needs.
“We are committed to helping home buyers into affordable home ownership, and are determined to accelerate housing supply across all tenures, including self-build, to support families across Scotland get on the housing ladder,” says Burgess.
The HSBLF is now open to applicants. A brochure and application forms can be found on the HSCHT website.
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