Your First Home: Government confirms new details of first-time buyer scheme

Good news for first-time buyers! The Government has confirmed more details of its new Your First Home scheme, including who could be eligible, how the equity loan works and when applications will open.

Following its initial announcement in September, the Government has today (28 October) revealed further information about Your First Home, a new buying scheme designed to help more people get onto the property ladder with a smaller deposit.

With deposits starting from just 2.5% and Government-backed financial support, the scheme could make buying a new-build home more achievable for eligible first-time buyers across England.

How does the Your First Home scheme work?

Your First Home is designed to help first-time buyers who can afford monthly mortgage repayments but may be struggling to save a larger deposit.

Under the scheme, eligible buyers will be able to:

• Put down a deposit of just 2.5% of their new home's purchase price.

• Access a Government equity loan worth 20% of the property's value.

• Enjoy five years interest-free on the equity loan.

• Cover the remaining purchase price with a repayment mortgage from a participating lender.

For example, if you're buying a £300,000 new-build home, you could put down a deposit of just £7,500, receive a £60,000 Government equity loan and take out a mortgage for the remaining £232,500.

That's a smaller upfront deposit and mortgage than you'd typically need with a standard 95% mortgage.

Who is eligible for Your First Home?

The Government has also confirmed new eligibility details, giving buyers a clearer idea of who could benefit.

To qualify, you'll generally need to:

• Be a first-time buyer purchasing a new-build home in England.

• Have a household income of £110,000 or less, or £140,000 or less in London.

• Buy a property within the relevant local price cap.

• Use the property as your main home.

• Secure a mortgage with a participating lender.

Local property price caps will apply, with full details and eligibility requirements to follow.

What happens after the interest-free period?

The Government equity loan will be interest-free for the first five years. Interest will then be charged at 1.5% in year six, increasing to 3% from year seven.

The loan is linked to your property's value, meaning the amount you repay could increase or decrease depending on how much your home is worth when you repay it.

When will Your First Home launch?

There's not too long to wait!

The Government has confirmed that pre-registration will open by the end of December 2026, with applications expected from February 2027 and the first home purchases anticipated from April 2027.

Further guidance on participating developers, eligible properties and the application process will be published ahead of launch.

Interested in the scheme? Visit our website page to register your interest and be kept updated. 

Start exploring your first home options

Thinking about buying your first home? Now's a great time to start exploring what's possible.

Discover more about Your First Home, or take a look at our new-build homes and start picturing where your next chapter could begin.