Your First Home: A new scheme to help first-time buyers

A new government scheme could make it easier for some first-time buyers to purchase a new-build home, by reducing the deposit and mortgage they need to find.

Called Your First Home, the scheme is intended for eligible first-time buyers in England. Buyers will need a deposit of at least 2.5% of the purchase price, with a government equity loan covering 20%. A mortgage from a participating lender would cover the remaining amount.

The loan will be interest-free for the first five years. Interest is then expected to be charged at 1.5% in year six and 3% from year seven.

Eligibility is expected to depend on household income, the home’s price and whether the buyer is purchasing a new-build property from a participating developer. The income limit is £110,000 for those purchasing a home outside of London. Published local price caps state that eligible homes in Bassetlaw can cost up to £245,000, while the cap in Doncaster is £240,000.  Applications are expected to open in February 2027, with the first sales under the scheme anticipated from April.

Darryl Barker, Managing Director of Albemarle Homes, said: “For many people, saving for a deposit is one of the biggest challenges when buying their first home. It’s encouraging to see a scheme that could reduce the deposit and mortgage needed, giving more first-time buyers the chance to explore home ownership.”

Albemarle Homes has a dedicated webpage with the latest information about the scheme. Those wanting more information can register for updates here https://www.albemarlehomes.co.uk/our-offers/your-first-home/