Your First Home scheme

What has been announced?

The government published its Your First Home outline on 28 October 2026. It is intended to help qualifying first-time buyers purchase an eligible new-build home in England with a smaller deposit and mortgage.

Applications are not open. The published timetable expects customer pre-registration and further guidance by the end of December 2026, applications in February 2027 and the first property sales in April 2027. These are the announced plans; availability, the final rules and lender participation still need checking. Read the current government publication.

This page is an introduction to the announcement. A conversation with Jack is a planning discussion, not a government application or a reservation of scheme funding.

How the funding is intended to fit together

The published structure combines a deposit of at least 2.5% of the purchase price, a government equity loan of 20% and a repayment mortgage from a participating lender. Lenders will still assess affordability and credit history.

For illustration, a £300,000 purchase with a 2.5% deposit would use £7,500 of buyer funds, a £60,000 equity loan and a £232,500 mortgage. This is a funding example, not a mortgage offer, and excludes transaction and ownership costs.

The government would not be a joint owner or landlord. The equity loan would remain a separate financial commitment alongside your mortgage, with its own interest and repayment terms.

Look beyond the initial deposit

The published outline provides five years without equity-loan interest, then a 1.5% interest rate in year six and 3% from year seven. Paying that interest does not reduce the equity loan itself. Full collection and repayment guidance is still to be published.

The amount repaid is linked to the home's value. A 20% equity loan would normally mean repaying 20% of the independently assessed value when the loan is repaid. The cash amount can therefore rise or fall; it is not simply a fixed £60,000 debt in the example above.

Consider the later interest charges, future mortgage rates and the costs of selling or remortgaging. Allow separately for legal and mortgage fees, insurance, service or estate charges and maintenance. The smaller initial deposit should be assessed alongside the full long-term commitment.

Known outline. Further detail pending.

The published outline says buyers will normally need to be first-time buyers, occupy the home as their main residence, meet a household income limit of £110,000 outside London or £140,000 in London, and obtain a participating lender's mortgage.

Local property price caps will apply. Some example caps, including London caps, have been published, but the complete local-authority list and full eligibility rules remain pending. The property must come from a participating developer.

Before committing, confirm the final terms for the particular property, lender and buyer. The guidance still needs to clarify areas such as minimum equity-loan repayments, valuation requirements, fees and how repayment works on sale or remortgage.

The next steps

1. Build a current budget

   Set out your deposit, income, commitments and likely purchase area.

2. Compare available routes

   Consider existing purchase options alongside the announced scheme and your timing.

3. Check the final launch guidance

   Confirm official eligibility, participating homes and lenders when the details are released.

What to prepare

Tick the points you have covered before a conversation. These are preparation notes; ticking them does not confirm eligibility.

• Deposit available after allowing for fees and a household buffer
• Income and commitments for everyone buying
• Preferred location, new-build price and moving timetable
• Questions about future equity-loan interest and repayment

Official guidance

Checked 30 October 2026. Availability, rules and lender criteria can change. Follow the official guidance and confirm the position before committing.

• GOV.UK: Your First Home, published 28 October 2026
• GOV.UK: original September 2026 announcement