The Scottish government has delivered on an ambition to support self and custom builders with a £6million extension to its Self-Build Loan Fund. People unable to access standard bank lending for a self build can apply for a loan to contribute to the development costs of their project, up to the value of £175,000, with a fee of £895 for the product, based on 5.5% interest.
The structure of the loan is designed to be short-term and repaid on completion of the build, with repayment terms drawn up on a project basis. The first phase of the “Self Build Loan Fund” ran for three years from 2018, with an initial pot of £4million fund, which was extended for a year with an additional £2million in funding. These followed on from the success of a pilot scheme in the Highlands.
The relaunched fund reopened for new applications at the end of November 2022, giving people, many of whom want to remain in their communities, the opportunity to build. The fund also aims to support the delivery of high quality and energy efficient homes. To date the Self Build Loan has awarded 41 loans worth a total of £6.2 million.
Housing Secretary Shona Robison said: “We know it can be more difficult to access finance for self-build projects than for buying an existing property, and this fund is a crucial lifeline for those unable to access standard bank lending. When loans are repaid, the money can be reused, during the life of the fund, supporting more self-builders and providing more homes for future generations.
Shona also stated: “Self-provided housing can play an important role contributing to the long-term sustainability of our rural and island communities, and this £6 million Scottish Government fund will continue to help support this. It has had great success in the Highlands and Islands and has also provided dream homes for people living across the whole of Scotland. Wherever you live, if you’re interested in building your own home I’d encourage you to contact the Communities Housing Trust to find out more.”
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