First Home Fund Mortgages with Bad Credit

Steven Neale
By Published On: February 21, 2020Last Updated: May 10, 2024

Can I Get a First Home Fund Mortgage with Bad Credit?

Getting a First Home Fund mortgage with bad credit from a high street lender is almost impossible. However, I know of one lender who can provide First Home Fund mortgages to those with poor credit, depending on the severity of the credit issues and how long ago they came about.

For example, if you have a default or CCJ registered on your credit file within the last few months, you are unlikely to be accepted. However, if your bad credit issues were from more than 6 – 12 months ago, I can almost certainly help.

It’s also possible I could help you get a First Home Fund mortgage if you have more serious credit issues, such as an IVA, DMP or even if you’ve been bankrupt. The key factor is how long ago these credit issues occurred and how they were rectified. 

You may have even had your home repossessed and think it’s impossible to get a mortgage. I’ve helped many clients in similar circumstances to find a mortgage and get back on the property ladder.

Bad Credit Mortgages for Scotland

Before applying for a First Home mortgage, it’s important that you check your credit file to understand whether you have any issues, such as missed payments, defaults or CCJ’s for example. You could look at one of the free reports from Equifax’s ‘Clearscore’ or TransUnion’s ‘Credit Karma’ or use Check My File for free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three.

When it comes to getting a mortgage with bad credit, the biggest hurdle for most buyers is the deposit. Having a poor credit history usually means you will need a larger deposit, which is often around 25%. 

The First Home Fund scheme in Scotland is a great option for those with bad credit, as it can provide up to £25,000 towards the cost of your mortgage and therefore reduce the amount of deposit required.

What is the First Home Fund scheme?

First Home Fund is a Scottish Government scheme which aims to help first-time buyers get on the property ladder. The scheme offers first-time buyers up to £25,000 towards the cost of a new build or existing property.

How does the First Home Fund scheme work?

The First Home Fund is a shared equity scheme. It works by splitting the cost of purchasing the property with the Scottish Government. The first-time buyer provides their own share through a deposit and mortgage, with the Scottish Government offering the remaining share, up to £25,000.

For example, let’s say the property you wish to buy is worth £150,000 and you want to put down a 10% deposit. The Scottish Government can provide £25,000, which means you have to provide a mortgage and deposit for only £125,000. With a 10% deposit (£12,500), you would require a mortgage of £112,500.

When it comes to selling the property, you would have to pay back the £25,000 to the Scottish Government. An alternative option is to pay the £25,000 back earlier buy increasing your equity share of the property.

Who can get a First Home Fund mortgage?

The First Home Fund scheme is available to all first-time buyers in Scotland, whether applying as a single applicant or jointly. Some requirements include:

  • The scheme is only available to first-time buyers in Scotland
  • The scheme can be used to purchase both new build and existing properties
  • The mortgage must be for at least 25% of the property value
  • The mortgage must be a repayment mortgage (not interest only)
  • The property can not be used as a buy-to-let
  • The maximum contribution is £25,000 or 49% of the property value (whichever is lower)

Why you should use a broker for a First Home Fund mortgage with bad credit

If you want to apply for a mortgage and have bad credit, the majority of standard lenders are unlikely to consider you. This leaves a small group of adverse credit lenders available, each with their own specific lending criteria.

As a specialised bad credit mortgage broker, I have a complete understanding of lending criteria for bad credit mortgage providers. I can review your credit file to understand your specific circumstances and match you with a lender who is likely to accept your application.

For more information on First Home Fund mortgages with bad credit, please call me 01494 526400 or complete my online enquiry form.

First Home Fund Mortgages with Bad Credit

Steven Neale
By Published On: February 21, 2020Last Updated: May 10, 2024

Can I Get a First Home Fund Mortgage with Bad Credit?

Getting a First Home Fund mortgage with bad credit from a high street lender is almost impossible. However, I know of one lender who can provide First Home Fund mortgages to those with poor credit, depending on the severity of the credit issues and how long ago they came about.

For example, if you have a default or CCJ registered on your credit file within the last few months, you are unlikely to be accepted. However, if your bad credit issues were from more than 6 – 12 months ago, I can almost certainly help.

It’s also possible I could help you get a First Home Fund mortgage if you have more serious credit issues, such as an IVA, DMP or even if you’ve been bankrupt. The key factor is how long ago these credit issues occurred and how they were rectified. 

You may have even had your home repossessed and think it’s impossible to get a mortgage. I’ve helped many clients in similar circumstances to find a mortgage and get back on the property ladder.

Bad Credit Mortgages for Scotland

Before applying for a First Home mortgage, it’s important that you check your credit file to understand whether you have any issues, such as missed payments, defaults or CCJ’s for example. You could look at one of the free reports from Equifax’s ‘Clearscore’ or TransUnion’s ‘Credit Karma’ or use Check My File for free for 30 days and then £14.99 a month – you can cancel online anytime – which checks all three.

When it comes to getting a mortgage with bad credit, the biggest hurdle for most buyers is the deposit. Having a poor credit history usually means you will need a larger deposit, which is often around 25%. 

The First Home Fund scheme in Scotland is a great option for those with bad credit, as it can provide up to £25,000 towards the cost of your mortgage and therefore reduce the amount of deposit required.

What is the First Home Fund scheme?

First Home Fund is a Scottish Government scheme which aims to help first-time buyers get on the property ladder. The scheme offers first-time buyers up to £25,000 towards the cost of a new build or existing property.

How does the First Home Fund scheme work?

The First Home Fund is a shared equity scheme. It works by splitting the cost of purchasing the property with the Scottish Government. The first-time buyer provides their own share through a deposit and mortgage, with the Scottish Government offering the remaining share, up to £25,000.

For example, let’s say the property you wish to buy is worth £150,000 and you want to put down a 10% deposit. The Scottish Government can provide £25,000, which means you have to provide a mortgage and deposit for only £125,000. With a 10% deposit (£12,500), you would require a mortgage of £112,500.

When it comes to selling the property, you would have to pay back the £25,000 to the Scottish Government. An alternative option is to pay the £25,000 back earlier buy increasing your equity share of the property.

Who can get a First Home Fund mortgage?

The First Home Fund scheme is available to all first-time buyers in Scotland, whether applying as a single applicant or jointly. Some requirements include:

  • The scheme is only available to first-time buyers in Scotland
  • The scheme can be used to purchase both new build and existing properties
  • The mortgage must be for at least 25% of the property value
  • The mortgage must be a repayment mortgage (not interest only)
  • The property can not be used as a buy-to-let
  • The maximum contribution is £25,000 or 49% of the property value (whichever is lower)

Why you should use a broker for a First Home Fund mortgage with bad credit

If you want to apply for a mortgage and have bad credit, the majority of standard lenders are unlikely to consider you. This leaves a small group of adverse credit lenders available, each with their own specific lending criteria.

As a specialised bad credit mortgage broker, I have a complete understanding of lending criteria for bad credit mortgage providers. I can review your credit file to understand your specific circumstances and match you with a lender who is likely to accept your application.

For more information on First Home Fund mortgages with bad credit, please call me 01494 526400 or complete my online enquiry form.

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Hentschel – 29th May 2024

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Anon – 4th March 2024

Steven and Sue have been absolutely wonderful throughout the whole mortgage application process. Even when we were unsuccessful with our first application which left us panicking, Steven remained calm and professional, informed us there were plenty of other options and worked quickly on a new application suited to our needs. Steven would answer his phone efficiently and if he missed us, he would call back immediately, something which can be quite rare these days. We would recommend Steven and Sue to anyone that maybe struggling with the whole mortgage process, especially the self employed, they took all the stress from us and deserved every single penny we payed them. We will absolutely be returning to Steven and Sue in the future and only wish we had found them sooner. We found them to be invaluable and an absolute pleasure to deal with, they are the reason we can finally sleep well at night! Thank you both again.

Oldham – 22nd February 2024

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Kunda – 15th February 2024

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Anonymous – 6th February 2024

Steve and Sue have been fantastic, they worked hard to get our application pushed through before Christmas and were on hand and very responsive to any questions that we had regarding our mortgage application. I would highly recommend.

Martin – 2nd January 2024

I have felt very well looked after throughout this process, and advocated for, to meet my individual financial needs. The communication between Steven, Sue and I has been of the highest standard, and I could not have asked for more. I was treated without prejudice, and with understanding, and I am so happy that I have been able to buy a home which my daughter and I can now settle into, and start a new chapter. Thank you so much Steven and Sue!

Hentschell – 21 November 2023

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