Clarity on Croft House Grant Scheme conditions

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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.”