The LIFT Housing Scheme Helps Low Income Families

The LIFT housing scheme has been helping those on low to moderate incomes with buying an affordable home. You may not have heard of the scheme as part of the scheme has been in the pilot stage for the last eighteen months. It is known as The Open Market Shared Equity Scheme and the Scottish Government has announced it will be expanded to cover the whole of Scotland. You will certainly be hearing more about it from the more press coverage of the scheme. This housing scheme, as the name suggests, helps those unable to purchase a home that is on the open market. The scheme is open to those are able to prove that their financial circumstances stop them from being able to purchase a home. The Scottish government has empowered ‘social landlords’ to run the lift housing scheme. These are local authorities and property companies that will assess your circumstances, you will have to prove your income and shown that help is needed for you to be able to purchase the home. The way the lift housing scheme works is that the Scottish Government will take an equity stake in the property. Normally this will be between 20 and 40 per cent and can be no more than 49 per cent, which would only be in exceptional circumstances. The buyer is then left to obtain a mortgage for the part not covered by the lift housing scheme but for a greatly reduced amount. As they don’t have to borrow as much the risk is lower for lenders so it may be possible to get a better rate for the mortgage coupled with lower monthly repayments. In this current economic situation, budgets are tighter than ever, this lift housing scheme will support mainly families afford a home without have to save up a deposit and have a larger mortgage and struggle with repayments. An increased budget has been given for the scheme so many more can get help. Check out your council’s website to see if the scheme is available in your area or ask a mortgage broker for more information and help with applying for the lift housing scheme.