Your First Home is a proposed scheme for first-time buyers purchasing new-build homes in England—not an open scheme you can apply for today. The government says it expects the plan to support a 2.5% deposit alongside a 20% government-backed equity loan, with an initial interest-free period. Income and local property-price caps will apply, but the government has not yet published their values or the scheme’s full costs and rules.
What is the new Help to Buy scheme?
Your First Home is the name used for a proposed government-backed equity-loan scheme announced by the Ministry of Housing, Communities and Local Government (MHCLG) on 26 September 2026. It is intended to help first-time buyers purchase new-build homes from developers signed up to the scheme. The announcement says the proposal is for England; it does not establish a matching scheme in Scotland, Wales or Northern Ireland.
MHCLG describes a proposal expected to support a 2.5% deposit and a 20% equity loan, initially interest-free. These are headline expected terms, not a complete rulebook. The government says more details and implementation timelines will be announced at Budget. Read MHCLG’s announcement.
Can you buy your first home with a 2.5% deposit?
That is the deposit level the government says the proposed scheme is expected to support, but it does not yet establish that every first-time buyer can purchase with exactly 2.5% down. The detailed calculation, any additional buyer contributions and the full eligibility rules have not been published.
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A smaller deposit also does not, by itself, show that a home is affordable. You would still need mortgage finance, and the scheme’s full repayment and cost terms are not available. MHCLG says the proposal could save buyers hundreds of pounds per month compared with a 95% mortgage, but it has not provided a worked example or total-cost comparison. Treat that as the government’s claim, not a guaranteed saving for an individual buyer.
Who is eligible for Your First Home?
The announcement identifies first-time buyers purchasing a new-build home from a developer signed up to the scheme as the intended buyers. It also says household-income caps and local property-price caps will apply. Their values, the definition of a first-time buyer, treatment of joint buyers, exclusions and the participating-developer list have not been set out in the announcement.
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Until those rules are published, you cannot confirm eligibility from the 2.5% deposit headline alone. The scheme’s stated scope is England, and the announcement does not establish eligibility under equivalent schemes elsewhere in the UK.
How would the proposed equity loan work—and what might it cost?
The expected government-backed equity loan is 20%. An equity loan is not necessarily a fixed cash debt equal to 20% of the original purchase price: its eventual repayment can depend on the scheme’s valuation and repayment rules. MHCLG has not yet stated how Your First Home’s loan will be repaid, how changes in property value will affect repayment, or what redemption rules will apply.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsThe announcement says there will be an initial interest-free period, but does not state its length or what interest, fees or other charges may follow. Without those terms, buyers cannot calculate the loan’s full cost or compare the proposal’s total monthly and eventual repayments with an ordinary mortgage. Do not assume the former Help to Buy scheme’s repayment or interest terms will carry over.
How does it compare with the old Help to Buy scheme?
The former Help to Buy: Equity Loan programme in England is useful only as historical context. Homes England’s guide says that programme required a minimum 5% deposit and offered an equity loan of up to 20% of the purchase price, or up to 40% in London. The old loan was repaid as the same percentage of the home’s value at repayment, and interest fees began after five years. Those terms applied to the historic programme, not automatically to Your First Home. See Homes England’s historical Help to Buy guide.
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| Feature | Proposed Your First Home | Former England Help to Buy |
|---|---|---|
| Deposit | Expected to support 2.5%, according to MHCLG’s 26 September 2026 announcement; detailed calculation not stated. | Minimum 5%, according to Homes England’s historical guide. |
| Equity loan | Expected 20%, according to MHCLG’s 26 September 2026 announcement; repayment formula not stated. | Up to 20% outside London and up to 40% in London under the historical programme, according to Homes England. |
| Repayment and charges | Initial interest-free period announced; its length, later charges and repayment rules not stated by MHCLG. | Repayment was the same percentage of the home’s value at repayment; interest fees began after five years, according to Homes England’s historical guide. |
| Availability | Proposed; launch date and application process not stated by MHCLG. | Historic programme covering 2013 to 2021, as identified in Homes England’s guide. |
When can you apply?
There is no confirmed opening date or published application process in MHCLG’s announcement. It says further costs and implementation timelines are due at Budget. The announcement also does not set out lender arrangements, so buyers cannot yet use it as an application route or assume a particular lender or developer is participating.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to check when the final rules are published
Before deciding whether the scheme works for you, compare the complete terms rather than the deposit headline. The announcement does not yet provide enough information to make that comparison.
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- Who qualifies, how first-time-buyer status is defined, and how the household-income limit applies to joint buyers.
- The local property-price caps and where eligible homes from signed-up developers are available.
- The required deposit, mortgage amount and any other buyer contribution.
- How the government’s equity share is valued, repaid and redeemed.
- How long the interest-free period lasts and when interest or other fees begin and change.
- The total monthly and eventual repayment cost compared with an ordinary mortgage or another available route.
Housing Minister Matthew Pennycook said the government was “acting to support those who can’t rely on help from the bank of Mum and Dad” in MHCLG’s 26 September 2026 announcement. That statement describes the policy’s aim; it does not change the fact that eligibility, costs and launch arrangements remain to be published.
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