What does the new Your First Home scheme mean for first-time buyers?

If you’ve been saving for a deposit, you’ll know how it feels. You put money aside each month, and the target moves again. Rent goes up. Prices go up. Owning a home starts to feel like something that happens to other people.

The October 2026 Budget won’t fix all of that. It does bring a new scheme that could make the first step a lot more manageable.

Your First Home at a glance:

• Up to 20% government equity loan

• Deposit from 2.5%

• Interest-free for five years

• New build homes from participating developers

• Applications open February 2027

What is Your First Home?

Your First Home is a new government scheme for first-time buyers in England buying a new build home. The government will lend you up to 20% of the price through what’s called an equity loan. You’ll need a mortgage for the rest, and a small deposit.

The government has set aside £4.7 billion and expects to help around 70,000 households.

Is Your First Home the new Help to Buy?

In many ways, yes. Like Help to Buy, it offers an equity loan on a new build home from a participating developer. The main differences are the lower deposit, from 2.5%, and the income and price limits, which are set locally.

How much will I need for a deposit?

As little as 2.5% of the price. For a lot of people, that’s the difference between waiting years and being able to buy now.

You won’t pay interest on the equity loan for the first five years. After that, the cost rises gradually. The government says this could save buyers hundreds of pounds a month compared with a standard mortgage.

Who is eligible for the Your First Home scheme?

The scheme is for first-time buyers who couldn’t otherwise afford to buy. Your household income needs to be under:

• £110,000 outside London

• £140,000 in London

There’s also a limit on the price of the home. It’s set according to typical prices in each local council area, so it will depend on where you buy. In London, the limit is £650,000 in inner London and £500,000 in outer London. Limits for the rest of England haven’t been published yet.

For buyers in Norfolk and Suffolk, the local limit will make a big difference to which homes qualify. We’ll share an update as soon as it’s confirmed.

You’ll need to buy your new home from a developer who has signed up to the scheme, much as buyers did with Help to Buy.

When can I apply?

Pre-registration opens by the end of December 2026. Full applications open in February 2027, and the first loans will be made from April 2027.

There’s a limit on how much funding is available each year. If this sounds right for you, it’s worth getting ready early.

I have a Lifetime ISA. Does anything change?

Yes, and it’s good news. If the home you want costs more than £450,000, the penalty for using your Lifetime ISA savings has dropped from 25% to 20%. That applies from 29 October 2026.

Has stamp duty changed?

No. Stamp duty rates are the same as before the Budget. If you were already planning to buy, your plans still stand.

How can we help?

Buying with an equity loan means a few extra steps. There’s more paperwork, more people involved, and some deadlines you really don’t want to miss. It’s a lot to keep track of when you’re also choosing a home and arranging a mortgage.

That’s where we come in. Our New Homes team handled Help to Buy purchases, so we know how these schemes work in practice and where things can slow down. We work with buyers and developers across Norwich, Lowestoft, Great Yarmouth and beyond. We’ll explain each stage in plain terms, keep you updated, and make sure nothing gets missed.

If you’re thinking about buying through Your First Home, talk to Anita and the New Homes team. We’ll help you take that first step with confidence.

You can read the government’s announcement on GOV.UK: https://www.gov.uk/government/news/new-first-time-buyer-scheme-to-be-confirmed-at-budget