Private Sector Housing

Mortage Schemes

Mortgage to Rent

This scheme offers owners who are struggling financially the opportunity to have their home bought by either a Housing Association or Local Authority and for them to continue to live there as the rent paying tenant. Applicants may be eligible if:

  1. they have obtained advice about their financial circumstances and what other options they have
  2. their home is in danger of repossession
  3. all the owners of the property agree to the application to the Mortgage to Rent Scheme
  4. the property is the sole or main residence of someone in the household
  5. there is a reason for the household to remain in the local area
  6. they are unable to sell the property and buy somewhere cheaper locally
  7. the property is clear of any legal action that would prevent it being sold

An applicant will not normally be eligible for the scheme if:

  1. They are under 60 years old and the capital held by them and their partner is greater than £2,000, or they are 60 or over and the capital held is greater than £14,000
  2. They have lived in the property for less than 12 months (unless they can show that they have built up a social network e.g. work locally etc)
  3. The value of their property is higher than the average value in their local authority area (unless there are more than 5 people in the household)
  4. Their property needs more than £6,000 worth of repairs (unless the repairs can be funded in another way).
  5. A financial assessment of the applicant will be undertaken by the Scottish Government to determine their eligibility and what contribution, if any, they will have to provide.

Hjaltland Housing Association participates in the scheme, but Shetland Islands Council does not. You should contact Hjaltland Housing Association by telephone on Lerwick 01595 694986 or email for further information.

The scheme may contact landlords who have not registered an interest in participating in the scheme if this is considered appropriate.

Mortgage to Shared Equity Scheme

The Mortgage to Shared Equity scheme involves the Scottish Government taking a financial stake in your home. You will still own your home and continue to have responsibility for maintaining and insuring it, and you would be able to reduce the amount you pay to your lender every month.

How to apply

You will need a letter from your financial adviser confirming you have taken independent advice before you can apply. Further details and contact details for the Funds team are available from the links in the box below.