Your First Home

Your First Home is a new Government scheme designed to help eligible first-time buyers purchase a new-build home in England with a smaller deposit and mortgage.

To use the scheme, buyers will normally need to:

• Be a first-time buyer
• Purchase an eligible new-build home in England within the relevant property price cap
• Use the property as their main home
• Have a total annual household income of £140,000 or less in London, or £110,000 or less outside London
• Be able to obtain a repayment mortgage from a participating lender

Eligible buyers will be able to purchase a qualifying new-build home using:

• A deposit of at least 2.5% of the purchase price
• A Government equity loan worth 20% of the purchase price
• A repayment mortgage from a participating lender
• An equity loan that is interest-free for the first five years

The scheme is expected to open for applications in February 2027, with further details on participating developers, lenders and eligible homes to be published ahead of launch.

For example, on an eligible £500,000 new-build home, the purchase could be made up of:

• £12,500 deposit based on the minimum 2.5%
• £100,000 Government equity loan based on 20%
• £387,500 repayment mortgage

This could mean needing a smaller deposit and taking out a smaller mortgage than buying the same home without the scheme.

Mortgage lending will remain subject to individual circumstances, affordability, credit checks and participating lender criteria.

The 2.5% minimum deposit and 20% Government equity loan structure are confirmed in the Government's Your First Home guidance. [gov.uk]

Your First Home will apply property price caps, meaning the home you purchase must fall within the limit set for its local authority.

Government guidance sets different caps across London, including limits of up to £650,000 in designated inner-London areas and £500,000 across many outer-London boroughs.

Speak to the London Square sales team to understand which homes may fall within the relevant Your First Home price cap.

Understanding mortgages, deposits, affordability and the buying process can feel overwhelming, especially when you're purchasing your first home.

That's why we're hosting first-time buyer events across selected London Square developments, bringing together mortgage advisers, industry experts and our sales teams to help explain the latest Your First Home announcement and what it could mean for you