Your First Home Scheme: a new option for first time buyers

If you’re a first time buyer struggling to get on the property ladder, there’s fresh hope! The government has announced a brand-new equity loan scheme, called Your First Home, designed to help first time buyers become homeowners with lower upfront costs.

What is Your First Home?

Your First Home is a new government-backed equity loan scheme. It has been created to help eligible first time buyers in England get onto the property ladder with a much smaller deposit than a typical mortgage would require.

The scheme will allow buyers to purchase a new-build home from a developer signed up to the scheme.

Based on what’s been announced so far, the scheme is expected to work as follows:

• The loans will come with an initial interest-free period, so monthly costs could work out considerably cheaper.
• Buyers will need a deposit of just 2.5% of the property price.
• The government will then provide an equity loan worth 20% of the property’s value to top up your deposit.
• This means you could take out a smaller mortgage for the remaining amount, rather than saving for years to reach a bigger deposit amount.

What type of property could you buy?

Your First Home is intended for new-build properties (in England), rather than homes being sold on the existing market, so it may not necessarily suit every eligible buyer.

You will also need to buy from a developer signed up to the scheme.

The location, type and price of the home you are looking for, as well as your income and deposit, will all play a part in whether the scheme is available to or right for you.

When will Your First Home launch?

For anyone hoping to use the scheme, there is no application process currently available, as Your First Home has not officially launched yet. We expect this information, along with the implementation timeline, to be announced during the Budget later today.

Read our latest blog to learn more – Your First Home: What we know so far.

Interested in the Your First Home Scheme?

Register below and we’ll keep you informed about the launch of the scheme and any other relevant news.