Get moving with Shared Equity...

The First Home Fund, which provides first-time buyers with up to £25,000 to help them buy a property, opened on 1 April however the scheme is now already committed for 2021-22. The initiative was closed on Thursday 8 April after being inundated with applications.

We know that many people were disappointed to hear that the fund ran out so quickly, but we want to let you know that you still have options with Zero C.

What if we told you that you could still buy your new dream home without having to pay the full price? Well, that is exactly what you can do with our Shared Equity scheme, available at selected developments across Scotland.

With our Shared Equity Scheme, you could receive an equity loan of up to 40% of the house value, meaning you will pay less than what you would have with the First Home Fund.  For example, with a home valued at £200,000 you could secure an equity loan of up to £80,000 vs. the £25,000 that would have been on offer with the First Home Fund.

Home Value

First Home Fund Amount

Shared Equity Loan Amount

£150,000 Up to £25,000 Up to £60,000
£200,000 Up to £25,000 Up to £80,000
£235,000 Up to £25,000 Up to £94,000

A range of properties at our Tornagrian, Chapelton and Rowett South developments are available under our Shared Equity scheme, allowing you to move in from just £81 per week*.

What is Shared Equity?

Equity loans are designed to help you to keep the deposit and monthly payments on your home to a minimum. You fund between 60% and 80% of the full price of the property made up of your deposit and a mortgage.  

You’ll own 100% of the property and there’ll be no rent to pay.


Purchase price £200,000 with a 20% equity loan
You will have borrowed £40,000 as the equity loan and the remaining 80% will be funded by a combination of your deposit and mortgage.

Resale price £220,000
You’ll pay back 20% of the current market value eg £44,000. Your own equity will have also increased in value.

Speak to the sales team at the development you are interested in to find out what shared equity properties available.


Who provides the loan?

The equity loan is provided by Places for People Scotland and the Scottish Government.

Who owns the property?

You do. You’ll own 100% of the property and there’ll be no rent to pay. 

When do I have to repay the loan?

The loan will be a set percentage of the property’s value. So, when you come to sell your house in future, you’ll pay back the same percentage of the sale price.

For example, if you have a 20% equity loan on a house worth £200,000, you will have borrowed £40,000 as the equity loan and the remaining 80% will be funded by a combination of your deposit and mortgage.

When you sell your house, you will pay back the equity loan. If your house is worth £220,000 when you sell it, you’ll pay back 20% of the current market value e.g. £44,000.  Your own equity will have also increased in value.

You have the option to reduce the loan and you can do this in two stages. For instance, if your equity loan is 20%, you could pay off a first stage of 10%, which would be divided equally between the two lenders. Then the same again for the second stage, which would reduce the loan to zero.

You can only make reduction payments once in any 12-month period.

What restrictions are there on the loan?

There are only a few. You must not own any other properties and this property must be your principle residence. You are not allowed to rent out the property or take in a lodger. You must not re-mortgage without our permission, and you have to repay the equity loan before you can release any equity for other purposes.

How do I apply?

In the first place, talk to our sales team, who will take your details and refer you to an independent mortgage broker or independent financial advisor. They will talk to you about the various options available and take you through the application process, so you’ll get all the help you need.


*Terms and Conditions: Dependant on income, circumstances and rates. Applicable on the Scottack at Tornagrain. Information correct as of 24/02/2021. Indicative costs - rates are subject to change. Based on a monthly mortgage commitment. All loans are subject to credit approval and can vary upon credit score and loan to value. Your home may be repossessed if you do not keep up repayments on your mortgage. For illustration purposes only. Purchase price £205,000. 60% equity share £123,000. 5% deposit of share £6,150. 35 year mortgage term. Mortgage amount £116,850. This is a fixed mortgage term with monthly payment £350.95 and initial interest rate of 1.38%. Months on borrowing rate 28 months. Standard Variable Rate (SVR) costs: Monthly payment £479.97. Interest rate 3.59%. Months on this SVR rate 392. APRC 3.4%. Total amount payable £197,975.30. Additional fees may apply. Lender: Halifax

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