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The Highlands Small Communities Housing Trust

The Highlands Small Communities Housing Trust

Read more about what The Highlands Small Communities Housing Trust is about

First published 
Jul 25, 2019
First published 
Nov 21, 2019


What is the Self-Build Loan Fund?

The Self Build Loan Fund (SBLF) is a Scottish Government initiative, providing a time limited fund(September 2018 to August 2021) to assist self builders where they have been unable to obtain mainstream self build mortgage finance. The fund is available Scotland wide to support additional  housing provision across both  rural and urban areas. The Fund cannot be used to purchase house plots, as the plot must be in the ownership of the applicant to provide the Scottish Government with security for the loan.

Eligible individuals can borrow up to £175,000,which they can draw down in staged payments similar to a traditional self build mortgage. Borrowers must provide a Professional Advisors Certificate at each stage of draw down. The SBLF is designed to fund the construction phase of a new home, and  once this is completed, the borrower will repay the loan either via a mainstream mortgage or by using the equity from the  sale of their existing home.

The Scottish Government has appointed the Highlands Small Communities Housing Trust (HSCHT) to administer the SBLF on its behalf.

How does the SBLF work in practice?

The HSCHT will assess  applications  to the SBLF through a two stage process. In the first stage, we will consider the applicants financial  circumstances  and ability  to proceed, with the second considering applicants' construction approach and the viability of the project. Only if both stages are satisfactory, will we consider offering applicants a loan.This process ensures that there is sufficient equity in the completed build and that the applicant can repay the loan. The loan from the SBLF is to make up any shortfall in the applicants contribution to the build cost of the property.

We will expect borrowers to follow standard industry practice, with an architect, surveyor or engineer monitoring the project. We also recommend that borrowers take out a new home warranty to further increase the availability of mortgage  products,  should  you seek mortgage finance to repay the loan.