What is the Your First Home scheme?
Your First Home is an announced government equity-loan scheme for first-time buyers in England who would otherwise be unable to buy. The original announcement concerns participating new-build homes. An equity loan is extra borrowing alongside your mortgage, rather than a deposit gift.
The Budget provides £4.7 billion to help around 70,000 households. Funding will be capped each year. This does not reserve a loan for an individual buyer.
Get scheme updates and opening-date reminders →Choose optional updates from Lynton Mortgages and confirm by email. This is separate from government pre-registration.
Your First Home scheme eligibility and price limits
- Location: England; participating new-build homes.
- Household income: up to £110,000 outside London or £140,000 inside London.
- Your deposit: at least 2.5%, with a maximum of 15%.
- Government equity loan: up to 20% of the price.
- Property caps: local-authority limits based on median prices. Published London caps are £650,000 inner London and £500,000 outer London.
These limits do not establish that you qualify or that a mortgage is affordable. Full buyer definitions, a complete local cap table and participating lenders, developers and homes still need checking.
When does Your First Home open?
- By the end of December 2026: pre-registration planned to open.
- From February 2027: full applications.
- From April 2027: first loans.
Homes England will deliver it initially. Later delivery through the National Housing Bank depends on the necessary legal and regulatory changes. No application portal has been verified as open here today.
What would a 2.5% deposit mean on £180,000?
This illustration assumes the full 20% equity loan. It does not check the property, local cap, your eligibility or a lender decision.
| Part | Share | Amount |
|---|---|---|
| Your deposit | 2.5% | £4,500 |
| Equity loan | 20% | £36,000 |
| Mortgage | 77.5% | £139,500 |
Total borrowing is £175,500 across the mortgage and equity loan. The smaller mortgage does not remove the government debt. An ordinary 5% deposit would be £9,000 with a £171,000 mortgage before costs.
The existing planner models an ordinary purchase, with affordability first. It does not silently add a government loan or estimate unpublished charges.
The catches
Costs and rules still to check
The first five years are interest-free. The Budget says charges increase gradually afterwards, but a numerical later-charge formula has not been verified here. Unknown is not £0.
- How repayment works when you sell, repay early or remortgage.
- The exact later interest rate, other charges and valuation costs.
- The full ownership definition, eligible homes and local price limits.
- Which mortgages and developers participate.
- Buying costs, property charges and a reserve you keep after moving.
Do not exchange contracts or commit a deposit on the strength of an announcement. Check the operational rules with the official scheme, lender and conveyancer.
A higher scheme price cap does not change the £450,000 LISA cap. Read the Budget savings changes before treating that money as accessible cash.
Questions you might be asking
When can I apply for Your First Home?
The Budget says pre-registration will open by the end of December 2026, full applications from February 2027 and first loans from April 2027. No official application portal has been verified as open here on 28 October. Signing up on this site means Lynton Mortgages emails, not government registration.
What are the Your First Home income limits?
The published household-income caps are £110,000 outside London and £140,000 inside London. These are scheme caps, not the amount a lender will offer you. Full buyer definitions and operational checks still need confirming.
How much deposit do I need?
The Budget sets a minimum 2.5% deposit and maximum 15% deposit, alongside an equity loan of up to 20% and a mortgage. Legal work, a survey, tax where due, moving and a reserve need separate money.
What is the property price cap?
The Budget announces local-authority caps based on median prices, with £650,000 in inner London and £500,000 in outer London. A complete local cap table has not been verified here. These figures do not raise the Lifetime ISA £450,000 whole-home cap.
Is the government equity loan free money?
No, it is extra borrowing, with the first five years interest-free and a gradual increase afterwards. The numerical later-charge and repayment formula is still unknown here and must not be entered as zero.
Is Your First Home the same as First Homes?
No, First Homes is a separate discount scheme and Your First Home is the new equity-loan scheme. Check the actual scheme named on a property.
Sources
Original information checked 28 October 2026. Lender criteria and government plans can change.
What to do next
Start with what you can afford each month, then check the cash and conditions for the route you are considering. Download the questions checklist.
Build my starting budget →Get Your First Home updates and opening-date reminders →Optional emails from Lynton Mortgages. Separate from government pre-registration.