More details on Your First Home scheme announced

The prospect of owning your first home could soon be closer than you think. The Government has confirmed further details of its new Your First Home scheme, offering eligible first-time buyers a new way to purchase a beautiful new-build home with a smaller deposit.

Following its initial announcement in September, the Government has now shared more information about the scheme, including eligibility requirements, how the equity loan will work and when applications are expected to open.

With deposits starting from just 2.5% and Government-backed financial support, Your First Home could make the move into a new home more accessible for first-time buyers across England.

Find out more about the scheme and register your interest to be kept informed of updates. 

How does the Your First Home scheme work?

Designed for buyers who can comfortably manage monthly mortgage repayments but may find saving a substantial deposit more challenging, Your First Home offers an alternative route to homeownership.

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 of 20% of the property's value.

• Benefit from five years interest-free on the equity loan.

• Secure a repayment mortgage from a participating lender to cover the remaining balance.

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

This means a smaller initial deposit and mortgage compared with a standard 95% mortgage, helping to make your plans for a new home a little more achievable.

Who is eligible for Your First Home?

The Government has also confirmed important eligibility criteria, offering greater clarity for prospective buyers.

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.

• Choose a property within the relevant local price cap.

• Intend to make the property your main residence.

• Obtain a mortgage from a participating lender.

Property price caps will vary by location, with further details and full eligibility requirements to be published ahead of the scheme's launch.

What happens after the interest-free period?

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

As the equity loan is linked to your property's value, the amount you repay may rise or fall depending on its market value at the time of repayment.

When will the Your First Home scheme launch?

The wait could soon be over for prospective first-time buyers.

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

Further guidance, including details of participating developers, eligible homes and the application process, will be available ahead of launch.

Discover your first home with Charles Church

Your first home should be somewhere you'll love coming home to, with thoughtful design, beautiful interiors and space to make your own.

At Charles Church, we create distinctive new homes designed for modern living. Whether you're beginning your property search or already imagining life in your new home, we're here to help you explore your options.

Discover more about the Your First Home scheme, or explore our collection of new homes and find somewhere truly special to call your own.