Hi, I came across this Scottish Government self build loan of £175k the other day.  I was wondering if anyone had used it yet and if so what your experiences were?

https://www.mygov.scot/self-build-loan-fund

Cheers

sblf_brochure.pdf

I am really stunned that nobody seems very interested in this!  I thought it was a complete game changer.....

In a nutshell (to save you clicking the linky and reading it)

 

1) you need to own the land outright or have a concluded missive for buying it and cash to pay for it

2) You need to have full planning and building warrant in place for the land

3) you must have applied to conventional high street funders for a self build mortgage and been turned down

4) you must not own any property which you let out for profit ie buy-to-let.

 

If you meet those criteria then the Scottish Govt will lend you £175k in a stage payment drawdown basis at 5.5%

 

I am not sure how they assess affordability but it does say things on the application page that imply you are expected to own a property already and have equity in it, so the ScotGov loan works as a sort of bridging loan to enable you to build (or start building).  They also ask for your build cost estimates.

 

It doesn't say that the house you own has to be in Scotland (that I can see) so my reading is that it would work for those who want to move to Scotland from other areas.

Perhaps, people are able to get their own finance, so are not eligible.