What you need to know about the LIFT scheme

For those that haven't heard about the LIFT scheme it is the Scottish Government's programme to help those on low incomes with the purchase of their first homes. It has never been a more difficult time for anyone to be able to meet the criteria set out by the major financial institutions. I'm sure you are all aware but to afford a good rate mortgage we are looking at least a fifteen per cent mortgage.

The LIFT scheme could be the answer for many; here I explain the main features and some of the small print that you should be aware of so hopefully you will have a better understanding of the scheme.

So the first point to make is it is designed to help low income households so you would need to meet certain criteria, you can of course try to apply however it may be the case that unfortunately you may have to just save your money until you have enough for a deposit.

The Scottish Government will normally take a stake of up to 40 per cent. So run your figures for what you can afford and what stake they would need to offer for you to afford the property you have in mind. They will however, in special circumstances lend more to certain parties such as if your current property doesn't meet your needs, if you are disabled for example. The buyer must be a majority stakeholder therefore they would need a 51 per cent equity stake.

The lift first time buyer scheme gives you the option to increase your stake in the property at a later date. This must be two years after the agreement and it must take your stake to a minimum of 80 per cent. You then have the opportunity to increase this to 100 per cent (in most cases) after one more year.

The exception is where the Scottish Government will take a ‘golden share' meaning that it won't allow you to own more than 20 per cent. It does this in areas where housing levels are low in order to protect availability of social homes. The Scottish Government will however tell you in advance whether this will be likely to apply.