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How will the Your First Home scheme work?
The scheme is specifically for first-time buyers who have a regular income but don’t have the traditional large deposit to get started.
Here's how it could work on an eligible new build property worth £300,000:
2.5% deposit = £7,500
20% Government equity loan = £60,000
Repayment mortgage on the remainder = £232,500
For comparison, with a standard 95% mortgage you would typically need a deposit of £15,000 and a repayment mortgage of £285,000.
You'll own your home from the start, and the equity loan will be interest-free for the first 5 years. After that, there'll be an interest rate of 1.5% for Year 6, and 3% from Year 7.
For more information about the equity loan and how repayment works, visit the Government Website .
Your First Home scheme FAQs
What is the Your First Home house-buying scheme?
Your First Home is a proposed Government-backed equity-loan scheme designed to help first-time buyers in England purchase a new-build home. Under the proposals, eligible buyers could put down a 2.5% deposit and access a Government-backed equity loan of up to 20% of the property's value, with a mortgage covering the remainder. The final scheme details are yet to be confirmed
Who is eligible for Your First Home scheme in the UK?
The scheme is intended for first-time buyers in England who have struggled to save a larger deposit. Eligible buyers outside of London must have a total annual household income of £110,000 or less, or £140,000 or less within London. More eligibility rules are expected before applications open.
Which properties can Your First Home be used on?
The scheme can be used on eligible new build homes from developers who are participating in the scheme. Property price caps will vary by location, and a full list is available on the Government website
How do I apply for a Your First Homes property?
The application process for the proposed Your First Home scheme has not yet been announced, but we know that the scheme will open for pre-registrations by the end of 2026.