Clarity on Croft House Grant Scheme conditions

Western Isles SNP MSP, Alasdair Allan, has welcomed clarification from the Scottish Government on the terms of the Croft House Grant Scheme.

Alasdair Allan commented: “The Croft House Grant Scheme is an essential component in financing many house builds throughout the crofting counties - and particularly here in the Western Isles.

“Some successful applicants have however had difficulty securing a mortgage. This is due to a misconception, on the part of the mortgage provider, that the Scottish Government took second charge on the completed property.”

Dr Allan continued: “Having raised this issue with the Scottish Government, I have been assured that no such second charge applies when a build is part-financed by CHGS, and that funding from this source is not a legitimate reason for rejecting a mortgage application.

“Increasingly, crofters may be approaching a wider range of mortgage providers who are unfamiliar with the CHGS and its conditions. Any constituent currently experiencing this problem is welcome to contact my office, and I will be happy to contact any lender who continues to refuse on the above grounds.”