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The LIFT Open Market Shared Equity (OMSE) scheme.

Following on from the success of the previous Scottish government LIFT Scheme, the new 2024 LIFT Open Market Shared Equity (OMSE) scheme has been set up once more to help buyers purchase a home by providing funding up to 40% of the property valuation or purchase price (whichever is the lower).

Get a Mortgage in Principle today with The Mortgage Broker Scotland and we will help you apply for the LIFT scheme. You need a mortgage in principle to be considered for the OMSE.

There are 14 Lenders that offer mortgages for the OMSE Scheme, and they are all on The Mortgage Broker Scotland’s panel with strong relationships.

Who is eligible for OMSE?
  • First Time Buyers
  • Armed Forces, Veterans and
  • Widows of Armed Forces
  • With disability and in need of housing
  • Renters from Council or Social Housing
  • 60+ Years Old

How do I apply for OMSE?

Don’t worry, you can speak to The Mortgage Broker Scotland today and we will make applying for the LIFT scheme simple. With free, no obligation advice, you can apply without any obligation to buy the property if you are approved. Let us takeaway the complexities from you regarding the scheme. Speak to us today to discuss your options:

0800 0320 316

In order to proceed after we speak to you, we will require the following:

  • 3 Months Bank Statements
  • Recent Payslips that equal 3 months
  • If Self Employed – then SA302 tax form
  • Any benefit payment information
  • Proof of accommodation status
  • Identification
10-40% contribution to a mortgage from the Scottish Government. 14 There are 14 Lenders offering OMSE and they are all on The Mortgage Broker Scotland panel

How does the LIFT Open Market Shared Equity scheme actually work?

As a buyer who may not be able to afford the price of a home, the Scottish Governement offer support those who are eligible. The aim being, that the Government contributes between 10% – 40% of the value or the purchase price (whichever is lower) for a home that you want to buy from the open market.

If and when in the future you decide to sell the home, the same percentage of the sale price will be returned to the Scottish Government. For example, if you purchase today at £100,000 with 30% help under the OMSE, then the Scottish government effectively own 30% valued at £30,000. If you then sold the property for £120,000, the repayment is still 30%. Which is £36,000.

Effectively, they take exactly the same risk as you on the property and own a % of it. You can if you chose to, purchase some of this equity back off the government at a market valued rate.

The Scottish Government have set thresholds for property values that have different limits, depending on the area. The table below sets out the price of homes that can be bought under the Open Market Shared Equity scheme.

OMSE areas New interim thresholds (£), by apartment size
  2 3 4 5 6
Aberdeen City 100,000 120,000 135,000 165,000 235,000
Argyll & Bute 85,000 125,000 165,000 220,000 285,000
Central Aberdeenshire 130,000 170,000 200,000 240,000 280,000
Central Mainland Highland 115,000 165,000 200,000 250,000 310,000
Clackmannanshire 55,000 85,000 115,000 190,000 235,000
Dumfries & Galloway 80,000 105,000 130,000 175,000 235,000
Dundee 65,000 95,000 120,000 180,000 225,000
Angus 75,000 125,000 165,000 220,000 280,000
East Mainland Highland 100,000 100,000 115,000 170,000 185,000
Edinburgh 150,000 180,000 220,000 295,000 440,000
East Lothian 130,000 175,000 200,000 260,000 355,000
Midlothian 130,000 145,000 170,000 195,000 320,000
West Lothian 85,000 115,000 130,000 145,000 240,000
Eilean Siar 95,000 125,000 130,000 180,000 235,000
Falkirk 55,000 85,000 110,000 175,000 225,000
Fife North 90,000 125,000 160,000 215,000 250,000
Fife South 65,000 85,000 110,000 175,000 235,000
Glasgow 85,000 100,000 115,000 190,000 270,000
East Dunbartonshire 95,000 120,000 175,000 225,000 340,000
East Renfrewshire 90,000 135,000 180,000 255,000 375,000
Inverclyde 40,000 50,000 65,000 75,000 165,000
Renfrewshire 65,000 80,000 105,000 135,000 240,000
Moray 100,000 130,000 155,000 190,000 240,000
North Lanarkshire 55,000 70,000 85,000 110,000 185,000
South Lanarkshire 55,000 80,000 100,000 135,000 220,000
North Ayrshire 50,000 65,000 75,000 95,000 190,000
East Ayrshire 55,000 80,000 105,000 150,000 205,000
North Aberdeenshire 80,000 115,000 125,000 170,000 230,000
Orkney 85,000 135,000 185,000 225,000 270,000
Shetland 90,000 140,000 190,000 235,000 280,000
Perth & Kinross 95,000 145,000 200,000 250,000 310,000
Rural Stirling 120,000 160,000 240,000 330,000 410,000
Scottish Borders 85,000 125,000 160,000 235,000 270,000
South Aberdeenshire 140,000 185,000 205,000 255,000 310,000
South Ayrshire 60,000 80,000 100,000 150,000 210,000
Urban Stirling 95,000 115,000 135,000 250,000 300,000
West Dunbartonshire 55,000 75,000 100,000 155,000 235,000
West Mainland Highland 105,000 135,000 155,000 205,000 235,000

Background Information Around what is a Lift Scheme in Scotland and how they work?

The Lift Scheme is a government-backed initiative in Scotland to help people get onto the property ladder. It has been around for quite a while, but it’s pretty under used.

It’s a scheme where you can purchase a share of your property and the Scottish government will give you a percentage towards that, if you meet certain eligibility criteria. It really helps you get onto the property ladder more quickly than you would otherwise.

There are two Lift Schemes: The open market shared equity and new supply shared equity. What’s the difference?

The open market shared equity scheme is for people to buy properties on the open market. We would class those as secondhand properties – or properties that have been previously owned.

The new supply shared equity scheme is similar, but it’s primarily for new build properties available from the local council or housing association. Both the schemes work in a fairly similar way.

How does the lift scheme differ from other government mortgage schemes?

With Life you could potentially receive up to 40% funding towards the price of the property on the open market. There isn’t really any other scheme in Scotland that allows you to buy with such a large contribution from the government.

There used to be a couple of schemes available such as the first home fund, but this one is particularly useful because you receive such large funding towards the property – meaning your borrowing and your deposit is less.

Who is eligible for the Lift Scheme in Scotland? What are the criteria?

The scheme is really available to help people get onto the property ladder that would otherwise struggle. Maybe you’re finding it hard to save a deposit to buy a property, or to meet affordability requirements.

It’s earmarked for First Time Buyers and social renters. Speak to a mortgage broker because there are certain guidelines. We’ll have a look with you to see if you would be eligible. If you are, we would look into the documents you would need to get a mortgage decision in principle and start the ball rolling.

What documents do you need to provide when applying for the Lift Scheme?

Typically they ask for bank statements and proof of any savings you’ve got. You also need proof of income –  which means three months’ payslips if you’re employed, or your most recent tax return if you are self-employed. If you’re not working and receiving benefits, your benefit award letter would be useful as well.

Your broker can help with this. We can apply for the mortgage, get your agreement in principle and also do your application to the Scottish government for the Lift Scheme element.

How much can I borrow under the Lift Scheme?

It’s a little bit more complicated than a normal purchase, because there is a maximum purchase price for the area you’re buying in. The price cap that the Scottish government puts on the property really determines how much you could borrow.

So we would look at the area you’re looking at and the percentage share you would be getting from the Scottish government, as well as the purchase price for that property. Then we would look at affordability figures. It’s all something your broker will work out for you.

How does the Lift Scheme work for First Time Buyers?

You could receive a contribution of up to 40% towards the purchase of the property. So technically you would own 60% of that property. That’s going to keep your affordability within a range that will meet lenders’ requirements. It means that your deposit potentially is going to be lower as well.

As you own 60% of that property, when you do go to sell it, you would have to pay 40% back to the Scottish government

Are there different options available for First Time Buyers under the scheme?

Yes because there are the two different Lift Schemes that apply, depending on the property you’re purchasing. If you are looking at a new build they would come under the New Supply Shared Equity Scheme. Again, we would do the calculations for you and help you apply.

Then there’s the standard open market share equity scheme. There are defined products available through lenders depending on what you’re looking for.

Are there any insurance or savings products associated with the Lift Scheme?

No, there aren’t any specific products associated with the Lift Scheme. However, your mortgage and protection advisor would look at your individual situation and recommend insurance based on your circumstances.

You might be recommended to take certain types of insurance to protect you should anything happen. You could have a policy that repays the share that the Scottish government owns as well as your share of the property, should anything happen to you.

Are there any risks associated with using the Lift Scheme?

The Scottish government receives a share equivalent to their original contribution. For example, if it paid 25% of the purchase price, you would have to repay 25% of your sale price, even if that’s increased in value.

You potentially could be paying more back to the Scottish government if it did increase in value and you were going to sell.

Can you help applicants with the application process and finding suitable properties?

Absolutely, your broker can do that on your behalf. The Lift application is fairly straightforward if it’s something that you’re used to doing. Because we do these types of applications often, we can get them through fairly quickly.

We’ll help you fill it in and send off the documents because we will know what the government will ask for.

How do you repay the shared equity loan?

There are a couple of ways you can repay it. A lot of people choose to repay it on the sale of the property. You can leave it until you decide to sell the home.

If you do want to pay off sooner you can pay off the government share through various channels. You can use savings to pay it off, or when you come to the end of your product term you could potentially remortgage, borrowing a little bit more to pay the share off.

Perhaps your earnings have increased, for example, and you think you could possibly afford a larger mortgage repayment. In that case you could remortgage to cover the loan.

How does the Lift Scheme help people to get onto the property ladder?

It really helps if affordability is an issue for you, that’s stopping you getting a property on the open market. Because you are borrowing less, the affordability is easier to achieve. It also helps in terms of deposit as well, because your contribution would be typically lower.

A lot of lenders will take a 5% deposit on your share of the home. Again that will be lower than if you were buying the full share of the property. It just helps people get onto the property ladder a little bit quicker, if they’re struggling under normal circumstances.

Can someone still apply for the Lift Scheme if they already have a mortgage?

No, the scheme is only available for people who are struggling to get onto the property ladder. So if you already have a property, you would not be eligible for the Lift Scheme.

How does the shared equity element of the Lift Scheme work?

The buyer purchases the bigger share, usually between 6% and 90% of the property. The Scottish government contribution then covers the remaining amount. If, for example, you pay 85%, the government will pay 15% and hold this under a shared equity agreement with you.

You will still have a requirement to put down a 5% deposit and the government would own 15% of your property. You would be required to pay this back upon the sale of your home.

How long does the process typically take?

Speak to your mortgage advisor – we will submit your Lift application and agreement in principle. Approval typically takes around one week, or sometimes a bit quicker.

What are the benefits of the Lift Scheme for First Time Buyers and home movers?

The scheme means you have lower monthly mortgage payments and lower borrowing, which means better affordability. You will potentially be able to buy sooner than you would if Lift was not available.

It’s a really good scheme and I do feel it’s underutilised. If you’re renting at the moment it just means you could buy a property a little bit quicker, rather than saving up a larger deposit. You might struggle to get a slightly more expensive property without using the Lift Scheme.

We will cover more questions on the Lift scheme in a second episode which you can find here.

Your home may be repossessed if you do not keep up with your mortgage repayments. 

We continue the conversation about the Lift Scheme, with Louise McCaffery from The Mortgage Broker Scotland.

How can someone start the process of applying for the Lift Scheme?

The first thing to do is to speak to a mortgage broker. We will look at your affordability for a mortgage in the area that you’re looking to purchase in, plus the maximum price range and your eligibility for Lift.

We look at all three elements to make sure they all tie up. Then we take it from there to confirm you’re able to apply.

Are there any restrictions or limitations to the Lift Scheme?

The major limitation is the purchase price of the property. As stated on the Scottish government website, there is a list of maximum prices of properties based on the size of property and the area.

Depending on whether it’s a one-bed, two-bed or three-bed etc. there will be a maximum you can pay for a particular property. It’s defined based on the area the property is in.

Are there any options for lower deposit requirements under the Lift Scheme?

Most lenders would require you to put down a minimum of 5% deposit, although one lender was allowing potentially no deposit on the Lift Scheme. If your deposit is between zero and 5% they would potentially allow you to get a mortgage, subject to affordability.

Can the Lift scheme be used for purchasing a new build property?

Yes, it can be used for a new build property, but only particular properties are marketed – they are all part of the New Supply Shared Equity Scheme. They are only properties from builders linked to a council or housing association.

What types of properties are available through the Lift Scheme?

With the New Supply Shared Equity Scheme for new builds, only certain properties are eligible. With the Open Market Shared Equity Scheme, however, most properties would be eligible for this scheme.

We would look at that particular property for you and get approval through the government to use the Lift Scheme on that property. Again, your broker could do all that for you.

Are there any income or credit score requirements for the Lift Scheme?

There are income and credit score requirements, depending on the lender, who would do affordability and credit score checks on your application. On the Lift side of things, typically they just want to make sure that your combined income is under a certain level – it’s usually £80,000 a year to be eligible for the scheme.

How much do you need to contribute towards the property purchase if you use the Lift Scheme?

Typically your deposit is around 5% and then you would take out a mortgage for the remainder. For example, if you buy 60% of the property, your mortgage would be for 55% of its value and the government would own the remaining 35%.

Is there a maximum property value under the Lift Scheme?

This is probably the major thing to be mindful of with the Lift Scheme – every area and property is different. On the Scottish government website there’s a list of areas and property sizes, which lists out the maximum price for each.

How does the Lift Scheme differ from traditional mortgage products?

The main difference is the ownership of the property. You will own a percentage of the property as opposed to owning 100%. The mortgage products themselves are the same as a traditional mortgage. You could have a fixed rate mortgage, a tracker product et cetera.

You would just own a smaller share of the property than with a traditional mortgage.

What happens if you sell the property?

If you sell the property you would pay the percentage back to the Scottish government. You might, for example, buy a property under the Lift Scheme and contribute 80% on a mortgage and deposit, with the Scottish government giving you 20%. You would then need to pay back 20% of the sale price.

It’s not the price the government originally contributed – it’s what their proportion of the house is worth at point of sale.

Can I eventually buy the whole share of the property?

You can buy the whole share of the property, and you can do that in a few different ways. If you have savings you could just repay it with those. You might also choose to remortgage and borrow a little bit more on the mortgage and buy the full share of the property.

Is it possible to book a video appointment with the Lift Scheme team?

I don’t believe you can book a video appointment with the team. But what you could do is book a video meeting with a mortgage broker and we could take you through the process.

We would advise you on affordability, eligibility criteria and the property values. We also have contact details for the Lift team, so we can give them a call and clarify any information.

So while you can’t book an appointment directly with the Lift Team, you would likely be better off doing that with a broker.

What happens after I purchase a property under the Lift open market scheme?

Once you’ve purchased the property not an awful lot would happen – the only thing you need to consider is how you pay the Lift open market scheme back. That would be payable on sale of the property.

Or, if you wanted to purchase a bigger share of the property, you could buy Lift out prior to that. Other than repaying Lift, nothing else would happen.

What is the Scottish government doing to promote the Lift Scheme Scotland?

I’m not sure I can answer on behalf of the government, but from what I’ve seen there’s not an awful lot of promotion around the Lift Scheme. That’s one of the reasons we wanted to do this podcast. A lot of people don’t actually know about it.

What happens after you receive a response from the Lift Scheme?

Once you receive a response, typically that will mean you’re approved, or they may want some additional information which your broker can help you with.

As soon as you get that application approved, you will be given a timeframe to find a property. You can start looking for a home to buy. Again, your broker can help you with this.

If you go out of that timeframe, normally you can just go back to the Lift Scheme scheme and ask them to extend your application. Or you can just reapply – again, that’s something we can do.

Are there any restrictions on selling the property under the Lift Scheme?

There aren’t massive restrictions, other than you need to pay the Lift Scheme back. You pay them back a percentage of the property. If you had taken 40% for example from the Scottish government for the Lift Scheme when you purchase the property, you will repay 40% of the sale price.

What happens to the shared equity element of the Lift Scheme when you sell the property?

When you sell the property, that shared equity element would be paid back to the Scottish government. Your equity in the house would be reduced by the amount that you owe back to the Scottish government. That’s something your solicitor will be able to do for you.

What are the benefits of the new supply shared equity scheme?

One of the main benefits is being able to buy a new build property where you maybe couldn’t have afforded to do that previously. New supply shared equity would allow you to purchase a new build home, whether that’s a flat or a house.

With this scheme, affordability is a little bit easier to achieve and your deposit is potentially a little bit lower. It means you could get onto the property ladder a little bit quicker than you might expect.

Are there price thresholds for Lift Scheme properties and do they differ in Glasgow or Edinburgh?

That’s one of the main aspects of Lift to consider and one of the reasons you should speak to a broker. There are thresholds and they differ depending on the area you’re purchasing in.

They also change from time to time, but at the moment the maximum price threshold for a one-bedroom property in Edinburgh is £150,000 whereas in Glasgow it’s £85,000 for a one- bedroom home. The threshold does change based on the size of the property and the area.

It’s really important you’re fully aware of that and again your broker can guide you on particular properties that you’re looking at. [podcast recorded in June 2023]

Who is shared equity for?

The Lift shared equity scheme is typically for First Time Buyers, social renters and people who are struggling to get onto the property ladder any other way.

Maybe you’re struggling to save up a deposit while you’re renting, especially with ever-growing rent prices and utility bills. It’s pretty difficult to save up that deposit as well as pay all your household bills. So really it’s for anyone finding it hard to get onto the property ladder.

Is the lift scheme available throughout the UK?

No, it’s specific to Scotland and not available in the rest of the UK.

Are there any common issues or challenges faced by applicants to the Lift Scheme Scotland?

The biggest challenge that clients face is the price of properties. As we said earlier, thresholds differ depending on the area and the size of the property.

Sometimes trying to find a property under that cap can be difficult and if the market is pretty buoyant as it is at the moment, you’ll have multiple people offering on properties. But because of that threshold you cannot offer above that maximum price, which could put you at a disadvantage.

Are there any restrictions on renting out a Lift Scheme property?

You would struggle to rent out a property while you had the Lift Scheme in place – you would have to go to the Lift Scheme providers to ask permission to rent out your property, as well as the lender.

Lift is not there to help you rent out a property – normally that’s outside their criteria. It’s not that you wouldn’t be allowed if your circumstances were to change, but it’s not something you’re supposed to do. It’s meant for residential purposes only.

What sort of issues might arise using the new supply shared equity scheme?

Probably similar issues – new supply shared equity is for new build properties so the prices are already set out which makes things a little bit easier.

The only problem would be getting that Lift application approved, especially if your earnings are higher. If you’re on a high salary you may not be approved for Lift. Again, that’s something your broker can look into for you. We’ll let you know if you would be approved.

What types of mortgage products are available under the Lift Scheme?

Mortgage products for the Lift scheme are fairly similar to those for any other purchase. Some lenders do have particular Lift products, and most are fixed rates. But that’s not to say there wouldn’t be tracker or variable products available.

The products are similar to those you would get on the open market for a standard property without a shared equity scheme.

How do you differentiate yourself from your competitors in providing Lift scheme mortgage advice?

I would say it’s about keeping up to date with the Lift criteria and thresholds – and promoting it, as the scheme is fairly underutilised. A broker who hasn’t used the scheme much in the past might not know the specifics and the challenges.

It’s something that we deal with on a regular basis, and I do actively promote it to a lot of my clients where appropriate for them.

How can I get bespoke advice on the Lift Mortgage scheme?

Find a broker who is familiar with this scheme. There are particular lenders who allow you to use the Lift Scheme – not all of them do. There’s only a small handful of providers you can go to.

Your broker should know which ones to approach. We can also apply for the Lift scheme for you – we know what documents that you’re going to need. We’ll also get the application in quickly and help you find that property as quickly as possible.

Your home may be repossessed if you do not keep up with your mortgage repayments.