Key takeaways:
- The Your First Home scheme aims to let eligible first-time buyers secure a new build home with just a 2.5% deposit.
- A planned 20% equity loan from the Government with an initial interest-free period reduces the required mortgage size and monthly outgoings.
- Official rules will include household income caps and regional property price limits, with full details confirmed at the Autumn Budget on 28 October 2026.
Between bills, food shops and everything else life throws at you, putting money aside for a deposit is easier said than done.
The proposed Your First Home scheme could offer a new route onto the property ladder for eligible first-time buyers in England. With only a 2.5% deposit required and help from a government-backed equity loan, here’s everything you need to know and what it could mean for you if you’re hoping to buy your first home.
What is Your First Home scheme?
Your First Home is a proposed government-backed equity loan scheme designed to help eligible first-time buyers in England buy a new build home. The idea is to make getting onto the property ladder a little easier by reducing the amount you need to save for a deposit and the amount you need to borrow through a mortgage.
What are the key things to know about Your First Home?
If you’re thinking about buying with the help of Your First Home, here are the most important things you need to know:
A smaller deposit to help you get moving
The proposed scheme could mean eligible first-time buyers need a deposit of just 2.5% when buying a qualifying new build home. Of course, there are still other costs to factor in when buying a home but reaching that 2.5% could be a more manageable target.
There could be help with the cost of your mortgage
The government is proposing a 20% equity loan to cover part of the purchase price, meaning you would need to borrow less through your mortgage. An initial interest-free period is also expected, which could make a huge difference to your monthly costs.
You’ll also still need to meet your mortgage lender’s affordability criteria, so how much you can borrow and the new home you can afford will depend on your personal circumstances.
It will be aimed at eligible at first-time buyers
This new home buying scheme will be aimed at eligible first-time buyers in England, but being a first-time buyer alone won’t necessarily mean you qualify. The government has said a household income cap and local property price caps, so your circumstances and the home you’re looking to buy could impact if you qualify.
There’s more to come
Your First Home hasn’t been fully confirmed yet, so there are still a few important questions waiting to be answered. The Budget on 28 October 2026 is expected to give us more information about who can apply, property price caps, household income limits, costs and when the scheme will launch.
What are the benefits of buying a new build as a first-time buyer?
With a new build home from Linden Homes, you can move into a home that’s ready for modern life from day one, without having to budget for a long list of repairs, replacements and decorating jobs before you’ve even unpacked the boxes.
For first-time buyers, a new home can make budgeting a little easier too. New homes are built to modern energy-efficiency standards, which can help keep energy use and household bills down compared with older, less efficient properties. Plus, with fewer immediate maintenance jobs to worry about, you can put your money towards making the home your own.
How can you prepare for buying your first-time?
Your First Home could provide another option for eligible first-time buyers, but it isn’t the only way to buy a new home. If you’re already in a position to pack your boxes, you can explore our first-time buyer schemes and incentives available now instead of putting your plans on hold.
Looking to take the first step? Getting a rough idea of what you can afford is a good place to begin. Take a look at your income and regular spending, work out how much you could put towards a deposit and speak to a mortgage adviser to get a feel for what you could borrow. As a starting point, you can check out our deposit saving calculator and our mortgage calculator to do some planning.
It’s also a good idea to learn more about the areas and new homes you like before you’re ready to buy. Browse our new build developments for sale to learn more, compare different house types and keep an eye on homes coming soon.
Your First Home scheme has been announced but is still subject to confirmation. Details including eligibility, deposit requirements, property price caps, household income limits, the interest-free period and repayment arrangements may change before the scheme launches.
Frequently Asked Questions About Your First Home
How much deposit do I need for Your First Home?
The proposed scheme could allow eligible first-time buyers to purchase a qualifying new build home with a 2.5% deposit. The final rules and eligibility requirements have not yet been confirmed.
Can I use Your First Home to buy a new build home?
Yes, the Your First Home scheme is specifically designed to help buyers purchase a new build home. The scheme cannot be used on existing homes.
Who can apply for Your First Home?
The scheme is intended for eligible first-time buyers in England. Household income limits and local property price caps are expected to apply, so the final criteria will depend on both your circumstances and the home you want to buy.
How can I find a new build home with Linden Homes?
If you’re getting ready to buy your first home, explore our new build homes for sale here to see the latest developments and available homes.
