Home ownership

This section looks at some aspects of home ownership. It outlines the steps to take if facing difficulties in repaying a mortgage. It looks at the legal procedures that a lender must follow if a property is to be repossessed and the action an owner can take at this stage. It also discusses shared and low cost ownership schemes.

Mortgage jargon

This section gives a brief description of some terms that are commonly used in the discussion of mortgages. 

How mortgages work

It is important to remember that all mortgages, irrespective of the way in which the loan is to be repaid, share the same basic characteristics. 

Unfair terms in a mortgage

Mortgage contracts, known as standard securities, could contain terms that are unfair and so cannot be enforced. 

Payment problems and arrears

This section examines the options that may be available when facing difficulty in making mortgage payments. 

Court action over mortgage arrears

This section describes what happens when a mortgage lender takes action in the courts to repossess a property because of mortgage arrears. 

Possession procedures

This section describes what procedures lenders must follow in order to repossess a property from a borrower. 

Secured loans and second mortgages

Loans for less than £25,000 are regulated by the Consumer Credit Act 1974. The procedures for enforcing the debt by taking possession proceedings differ from possession proceedings where the mortgage is greater than £25,000. 

Mortgage to rent

The mortgage to rent scheme allows local authorities and registered social landlords to purchase a property from an owner who is facing repossession. The owner can continue to occupy the property as a tenant. 

Mortgage to shared equity

Mortgage to shared equity (MSE) is a new scheme introduced by the Scottish Government as part of the Home Owners' Support Fund. The scheme allows home owners who can no longer afford their mortgages and who have at least 25 per cent equity in their property to reduce their level of secured debt while retaining a stake in the home. 

Shared/low-cost home ownership

This section provides information on shared ownership and low-cost home ownership schemes, which help people who could not normally afford to do so, buy a home. The section looks at the different types of schemes available. 

Homeowners Mortgage Support (closed)

The Homeowners Mortgage Support (HMS) scheme was closed to new applications on 21 April 2011. 

Right to buy

The right to buy was abolished via s.1 of the Housing (Scotland) Act 2014 and the scheme closed to new applications on 31st July 2016.