Last Updated: 14 October I Reading Time: 6 minutes
Summary
On 26 September 2026, Prime Minister Andy Burnham announced a new Government-backed equity loan scheme called Your First Home. It is designed to help first-time buyers in England buy a new-build home with a smaller deposit than most mortgages require.
The scheme has been announced, but it is not yet open and its detailed rules have not been published. The Chancellor, John Healey, is due to set out the detail at the Budget on 28 October 2026. This article explains what has been confirmed, what has not, and what to think about before you buy.
Quick answer
Your First Home is an equity loan scheme announced by the Government for first-time buyers of new-build homes in England. Buyers would need a 2.5% deposit, and the Government would lend 20% of the property’s value, with an initial interest-free period. It has been announced but is not yet open. Full rules are due at the Budget on 28 October 2026.
In this article
- What is the Your First Home scheme?
- What has been confirmed and what has not
- How the scheme could work in practice
- How it compares with Help to Buy
- Is it the same as the First Homes scheme?
- Who the scheme will affect
- What to do while you wait for the full rules
Key takeaways
- Your First Home was announced on 26 September 2026 by the Government. The detailed rules have not yet been published.
- It offers a 20% equity loan on a new-build home, for buyers with a 2.5% deposit.
- The loan will have an initial interest-free period, but the length has not been confirmed.
- The scheme is for first-time buyers in England buying from a developer signed up to the scheme.
- There will be a household income cap and local property price caps. The figures are due at the Budget.
- Pre-registration is expected to open by the end of 2026. This is not the same as being able to complete a purchase.
- It is not the same as the existing First Homes scheme, which offers homes at a discount.
- You will still need a conveyancer to handle the legal side of the purchase.
What is the Your First Home Scheme?
Your First Home is a new equity loan scheme for first-time buyers in England. An equity loan means the Government lends you part of the purchase price, which you repay later, rather than you borrowing all of it from a mortgage lender.
The Government has described it as a revival of Help to Buy, the equity loan scheme that ran from 2013 to 2023. The aim is to help buyers who cannot rely on family support for a deposit.
What has been confirmed
According to the Government’s announcement, the scheme will:
- support buyers with a 2.5% deposit
- provide a 20% Government-backed equity loan
- apply to new-build homes bought from a developer signed up to the scheme
- include an initial interest-free period on the loan
- set a household income cap and local property price caps
- require developers to contribute to the cost of the scheme
The Government has also said the scheme sits alongside a new, permanent Mortgage Guarantee Scheme.
What has not yet been confirmed
The following have not been published, so nobody can say for certain how they will work:
- the income cap and the property price caps
- how long the interest-free period will last
- how and when the loan must be repaid, and what it costs afterwards
- the exact start date and how long the scheme will run
- how pre-registration will work
How the Scheme could work in practice
The figures below are an illustration only, based on the example given at the time of the announcement. The scheme’s actual limits are not yet known.
Take a new-build home costing £230,000, which was reported as the UK average first-time buyer price:
- A 2.5% deposit would be £5,750.
- A 20% equity loan would be £46,000.
- The remaining mortgage would be about £178,250.
With a standard 10% deposit, the same purchase would need £23,000 up front and a mortgage of £207,000. That is the deposit barrier the Government says it wants to tackle.
A lender will still assess your affordability in the usual way, and the equity loan will still need to be repaid.
How does it compare with help to buy?
The two schemes look similar, but there are differences.
- Help to Buy required a 5% deposit and offered a 20% equity loan that was interest-free for five years. It closed to new applicants in 2022, with final purchases completing in 2023.
- Your First Home is built around a lower 2.5% deposit and adds a household income cap and local price caps. The length of the interest-free period has not been confirmed.
Some have welcomed the scheme, while others have raised concerns about buyers taking on more debt. The sensible approach is to wait for the published rules and weigh them against your own finances.
Is it the same as the First Homes Scheme?
No. The names are similar, but these are separate schemes.
- Your First Home is the newly announced equity loan scheme, with a 2.5% deposit and a 20% Government loan.
- The First Homes scheme is an existing scheme in England. It offers eligible first-time buyers a new-build home at a discount of at least 30% from market value. The discount stays attached to the property when it is resold, and councils can set local eligibility rules.
Different rules and eligibility criteria apply to each, so check which scheme a developer or estate agent is referring to.
Who will the Scheme affect?
It is aimed at first-time buyers in England who are looking at new-build homes and find the deposit the main obstacle. Developers will also be affected, as they are expected to contribute to the cost. It is unlikely to help you if you are not a first-time buyer, are buying outside England, or would prefer an existing home.
What to do while you wait for the full rules
- Watch the Budget on 28 October 2026 for the confirmed rules, caps and timetable.
- Speak to a mortgage adviser about how an equity loan would sit alongside a standard mortgage.
- Be careful with reservations. Avoid paying a reservation fee on the strength of a scheme that has not opened.
- Instruct a conveyancer early. They can explain the contract and paperwork before you commit.
How GLP Solicitors can help
Buying a first home involves a significant legal commitment, and a new scheme brings new questions. Our conveyancing team can explain the legal process in plain language, so you know what you are agreeing to.
When you buy a new-build home, we can review the contract and the developer’s paperwork, carry out the necessary searches and checks, and liaise with your mortgage lender. Once the rules for Your First Home are published, we can also explain how any Government loan paperwork fits into the purchase.
We can also advise on how a property is owned between joint buyers, and on making a Will once you become a homeowner.
This article is for general information only and does not constitute legal advice.
Frequently Asked Questions
Your First Home is an equity loan scheme announced by the Government on 26 September 2026 for first-time buyers in England. Eligible buyers would need a 2.5% deposit, and the Government would lend 20% of the value of a new-build home, with an initial interest-free period. A standard mortgage would cover the rest. The scheme has been announced but is not yet open, and the detailed rules are due at the Budget.
No start date has been confirmed. The Government has said that the Chancellor, John Healey, will set out costs and implementation timelines at the Budget on 28 October 2026, and that pre-registration is expected to open by the end of 2026. Pre-registration is not the same as being able to buy, so it is sensible to wait for the published rules before making any plans that depend on the scheme.
Eligibility has not been published in full. The Government has confirmed that the scheme is for first-time buyers in England buying a new-build home from a developer signed up to it. It has also said there will be a household income cap and local property price caps. The figures for those caps are expected at the Budget, so nobody can yet say for certain whether they will qualify.
No. They are separate schemes with similar names. The First Homes scheme already exists in England and offers eligible first-time buyers a new-build home at a discount of at least 30% from market value, with the discount staying with the property when it is resold. Your First Home is a different equity loan scheme, with a 2.5% deposit and a 20% Government loan. Different rules and eligibility criteria apply to each.
Yes. Buying a home with an equity loan is still a property purchase, so you will need a conveyancer to carry out the legal work. That includes checking the contract, searches and title, dealing with your mortgage lender and, where the scheme requires it, handling the paperwork for the Government loan. Because the rules are new, it is worth speaking to a conveyancer early, before you reserve a property.