When the scheme was first announced in September, several important details were missing. The Autumn Budget has now confirmed the income limits, interest charges and expected opening dates.
The government has also confirmed that the equity loan will be linked to the value of your home. If you originally borrowed 20% of the purchase price, you would normally repay 20% of the home’s value when paying back the loan.
That means you could repay more than you originally borrowed if your home increases in value, or less if its value falls.
The loan will normally be repaid when you sell, although you’ll be able to repay some or all of it earlier.
We’re still waiting for the full eligibility rules, local property price limits, participating lenders and developers, and further details about repayments and possible fees.
The scheme has not launched, so buyers cannot apply yet. Read the government announcement.
Update – 29 October 2026: The government has now confirmed more details of Your First Home in the Autumn Budget, including who can qualify, how much the government loan will cost and when applications will open. We’ve added the new information below. You can also read the official government guidance.
The small deposit is the eye-catching part. Buyers would still need a mortgage and would owe money through a separate government loan.
Here is what has been announced so far, and what remains unclear.
How would Your First Home work?
Under the government’s plans, a first-time buyer would put down a deposit of around 2.5% of the price of an eligible new-build home.
A government-backed equity loan worth 20% of the property’s value would help pay for it. The buyer would need a mortgage for the rest.
An equity loan is money you borrow towards the cost of the home. It is not a free gift or a discount.
The government has now confirmed the equity loan will be interest-free for the first five years. Interest will then be charged at 1.5% in year six and 3% from year seven.
These interest payments will be separate from your mortgage and won’t reduce the amount you owe on the government loan.
What could a 2.5% deposit look like?
Take a £200,000 new-build home as a simple example:
- Buyer’s 2.5% deposit: £5,000
- Proposed 20% government equity loan: £40,000
- Mortgage needed for the remaining 77.5%: £155,000
These figures show how the purchase price could be split. They don’t include other buying costs, and your actual monthly mortgage payments will depend on the interest rate and mortgage terms you’re offered. You’ll also need to allow for interest on the government loan after five years.
For comparison, a 5% deposit on the same £200,000 home would be £10,000. The proposed deposit would be £5,000 lower, but the government loan would still have to be dealt with later.
Who could qualify?
The proposed scheme is for first-time buyers in England purchasing a new-build home from a developer that signs up.
The Autumn Budget has now confirmed household income limits of £110,000 a year outside London and £140,000 in London.
The property must be your main home, and local house price limits will apply. For example, the maximum property price will be £355,000 in Manchester and £375,000 in Reading.
Buyers will also need to qualify for a mortgage from a participating lender.
The full list of local price limits and remaining eligibility rules will be published before applications open.
What has not been confirmed?
The government says the Chancellor will give further details at the Budget in October 2026.
We are waiting for the full eligibility rules, the length of the interest-free period, later loan charges, how and when the equity loan must be repaid, the application process and the date buyers can start using the scheme.
The government suggests some buyers could pay hundreds of pounds less each month than with a 95% mortgage.
That is not a promise about any individual buyer’s costs. A fair comparison will need the mortgage terms and the full equity-loan rules.
Is this the same as the First Homes scheme?
No. The existing First Homes scheme offers eligible first-time buyers in England a discount of at least 30% on certain homes. Your First Home is a separate proposed scheme built around a smaller deposit and a government equity loan.
The schemes have different eligibility rules, so qualifying for one doesn’t automatically mean you’ll qualify for the other.
Can I apply now?
No. The scheme isn’t open yet, but the government has now confirmed its planned timetable.
Pre-registration should open by the end of December 2026, followed by full applications in February 2027. The first home purchases are expected from April 2027.
Pre-registration won’t commit you to buying a property, and further guidance will be published before applications open.
If you are hoping to buy, you can keep saving for your deposit and the other costs of moving.
If small amounts are easier to set aside, our 1p saving challenge is one way to start. Wait for the Budget rules before deciding whether Your First Home is an option for you.
Wait for the full eligibility and application details before deciding whether Your First Home is a suitable option for you.
