New Changes to the Self Build Loan Fund have Opened the fund up to more People

There have been new changes to the Scottish Government’s Self Build Loan Fund, which have opened the fund up to more people.


The main changes being that the fund is now open to existing home owners and the loan can be repaid with funds other than a mortgage (subject to the safeguards surrounding money laundering). This offers the opportunity to use the equity within an existing home to repay the loan, or to partially pay in conjunction with mortgage finance. It still remains that the new home must be your only home and permanent residency and if you have a buy-to-let property then you are not able to apply. 

The minimum loan amount of £30,000 has been removed and despite no longer requiring the loan to be paid back with mortgage finance, the new property must still be mortgageable. 

The Self Build Loan Fund was created to help those who have been unable to secure mainstream self build finance. It is a Scottish Government fund that is being administered by the Highlands Small Communities Housing Trust. The fund is available throughout Scotland with successful candidates being able to borrow up to £175,000.

The new criteria for applying to the Self Build Loan Fund is as follows: 

  • Demonstrate that you have been unable to obtain mainstream self build mortgage finance for a new home (not a conversion or extension)
  • Intend to occupy the property as your sole and only residence
  • Own a house plot
  • Have full planning permission in place and be ready to apply for a building warrant
  • Have a defined elemental build cost and construction programme
  • Be able to demonstrate that you will be able to repay the loan upon completion of your build 

For more information on the Self Build Loan Fund, visit the Highlands Small Communities Housing Trust website: https://www.hscht.co.uk/scotland-self-build-loan-fund