TSB has announced that it is supporting the Scottish Government’s First Home Fund pilot scheme.

First-time buyers in Scotland will be able to apply for a TSB mortgage to purchase their first property via the fund.

Announced in December 2019, the First Home Fund, a £150 million shared equity pilot scheme, provides first-time buyers with up to £25,000 to help them buy a property.

It is open to all first-time buyers in Scotland, and can be used to help buy both new build and existing homes.

The loan is interest free and not repayable until the property is eventually sold.

Buyers must be able to contribute a deposit of around 5% themselves.

Unlike Help to Buy, it is available on all properties and not just new build. There is also no limit to the property value that buyers wish to purchase.

TSB will accept the First Home Fund scheme loans on across its range of Shared Equity products and will consider loans supported by the scheme up to £250,000 depending on the size of the equity loan.

The funding is expected to help up to 6000 first-time buyers to purchase their first home until March 2021. This is in addition to the more than 32,000 households that have already used the Scottish Government’s shared equity schemes.

Nick Smith, head of mortgages at TSB said: “We’re pleased to support the First Home Fund – a scheme we expect to be very popular amongst first-time buyers hoping to take their first steps onto the housing ladder.

“It’s a well-known fact that minimum deposits can be a huge barrier to getting on the housing ladder, while other existing schemes are often targeted towards new build properties. With no maximum property value and a potential to be used for both new and existing homes, this scheme offers first-time buyers the flexibility they need to realise their housing aspirations.”