For first-time buyers, saving for a house deposit while balancing rent, bills and everyday expenses can easily feel like the hardest part of buying a home.
To help make it easier to get on the property ladder, the government has announced the Your First Home scheme, a low deposit buying scheme, designed to help you buy your first home. Here's everything you need to know.
What is the Your First Home scheme?
Your First Home is a government-backed equity loan scheme for first-time buyers in England. It is designed the reduce the amount of money you need to find to fund your deposit and how much you need to borrow for your mortgage.
How will the scheme help first-time buyers?
Your First Home will help first-time buyers who can afford a mortgage but are struggling to save enough for a typical house deposit. By reducing the deposit required to 2.5% and providing a government equity loan of up to 20%, the scheme could make it possible to buy a home with less money saved upfront.
Who will be eligible to use the Your First Home scheme?
In order to be eligible for the Your First Home scheme, you must be a first-time buyer looking to buy a new build home in England. You will also need to use the property as your main home.
To qualify, the government has announced that your total annual household income must be £110,000 or less outside of London, or £140,000 or less within London. There are also regional property price caps which can be found on the UK government website.
You will, of course, need to meet your mortgage lender's affordability and lending criteria. Being eligible for the scheme doesn't guarantee that you'll be offered a mortgage, so it is a good idea to speak to a regulated mortgage adviser in advance to learn more about what you could afford.
In short, to be eligible for the Your First Home Scheme, you must:
• Be a first-time buyer
• Be looking to buy a new build home
• Use the property as your main home
• Not exceed the annual household income cap (up to £110,000 outside of London)
• Be qualified by an approved mortgage broker
Can you use Your First Home on a new build?
Yes, Your First Home is intended to help buyers purchase a new build home, which could be useful if you're already looking at new homes in the North West. You can start exploring our range of new build developments, locations and house types now, so you have a better idea of what could work best for you once the final scheme details are announced.
When will Your First Home be available?
Pre-registration for Your First Home is currently expected to open by the end of 2026 and first customer applications are expected around February 2027.
Until then, the exact rules and terms and conditions could change, so it's important to check the latest government guidance before making any decisions based on the scheme.
How can you prepare for buying your first home?
You don't need to wait for Your First Home, we have a great range of schemes already available including 5% Deposit Match. So take a look at how much you have saved; how much you could continue putting aside each month and what you could afford to pay towards a mortgage.
It can also help to get familiar with the buying process, from finding your new home through to getting the keys. Our guide to buying a new home takes you through each stage, so you know what to expect when you're ready to make your move.
Can’t wait to start your next chapter?
If you’re looking to buy your new home sooner, we have a range of exclusive offers for first-time buyers, such as 5% Deposit Match, that can help get you moving. View our full range of offers in the ‘Buying with us’ section of our website.
Your First Home has been announced by the UK Government but is subject to confirmation and final scheme rules. Your home may be repossessed if you do not keep up repayments on your mortgage.
