Self-Build Loan Fund reopens to applications

The Scottish Government loan fund for people building their own homes who are unable to access standard bank lending has reopened for applications today.

After closing on 31 August, the Self-Build Loan Fund is again offering loans of up to £175,000 to help with the development costs of a home.

It aims to support the delivery of good quality and energy efficient housing, giving people more choice about the homes they want to live in.

Launched nationally in 2018 following a pilot scheme in the Highlands, the fund has to date made 41 loans worth a total of £6.2m. Borrowers pay an administration fee of £895. The interest rate is 5.5% (9% for those in default). The agreed repayment period depends on the nature of the project, but the loan is intended to be short-term and repaid on completion of the build.

Housing Secretary Shona Robison said: “This fund aims to unlock the dream of building your own home, in many cases allowing people to stay in their local communities. 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.

“Self-provided housing can play an important role contributing to the long term sustainability of our rural and island communities, and this £6m Scottish Government fund will continue to help support this. It has had great success in the Highlands & 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.”

Ronnie MacRae, CEO of the Communities Housing Trust, added: “In the years we’ve administered the fund, we’ve seen demand rise as conditions become even more challenging for people to build their own home. In many cases, families just need a bit of extra support and are fully able to build and then repay the loan.

“Self-build remains an important option for many, particularly in areas where no other options exist, so we are extremely grateful to the Scottish Government for continuing to provide the fund.”