How will the scheme work?
Under the scheme, eligible first-time buyers purchasing a qualifying new-build property could contribute a deposit of 2.5%, alongside a government-backed equity loan worth up to 20% of the property’s value.
The equity loan will initially be interest-free, with the Government saying this is intended to help keep housing costs more affordable for those using the scheme.
Buyers will still need to satisfy mortgage affordability criteria for the remaining balance.
Who is the scheme aimed at?
The Government says the scheme is intended to help first-time buyers who can afford the ongoing costs of owning a home but struggle to save a larger deposit.
There are household income limits and local property price caps, and it will apply to new-build properties purchased from developers participating in the programme.
Developers will also be expected to contribute towards the costs of the scheme through a fee linked to property values.
Eligibility criteria
You must:
- be 18 or older
- be a first-time buyer
- be able to get a mortgage for at least half the price of the home
- not earn more than £80,000 a year before tax (£90,000 if the property is in London) – this is your income from the previous tax year
If you’re buying with others:
- you must all be first-time buyers
- you must apply together, even if you’re not all getting a mortgage
- your joint income cannot be more than £80,000 a year before tax (£90,000 if the property is in London)
- Your joint income is the total of what you all earned in the previous tax year.
There may also be local eligibility criteria to consider as Councils will be able to set local eligibility criteria.
There are
A new scheme with familiar roots
The ‘Your First Home’ scheme follows a number of similar initiatives introduced by previous governments, most notably the Help to Buy scheme, which was launched in 2013 by then-Chancellor George Osborne. That scheme initially allowed eligible purchasers to buy a newly built home with a 5% deposit, on properties valued up to £600,000. The Government then provided an equity loan of up to 20% of the property’s value, helping buyers secure a mortgage for the remaining amount. The equity loan was interest-free for the first five years, before interest charges began to apply.
What happens next?
Pre-registration is expected to open before the end of 2026, subject to the final arrangements.
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