Your First Home: how the proposed scheme could help first-time buyers
There is encouraging news for aspiring homeowners. The Government has announced plans for Your First Home, a new equity loan scheme designed to help more first-time buyers in England get onto the property ladder.
For many first-time buyers, saving a deposit remains one of the biggest barriers to getting onto the property ladder. At Allison Homes, we understand that challenge and the difference additional support can make. While the full details are still to be confirmed, here’s what we know so far and how the scheme could help once it launches.
What is Your First Home?
Your First Home is expected to support deposits of just 2.5 per cent, backed by a 20 per cent Government equity loan, for first-time buyers purchasing a new build home from a developer signed up to the scheme. Buyers would then need a mortgage for the remainder.
The equity loan is also expected to include an initial interest-free period. The Government has suggested the scheme could save buyers hundreds of pounds per month compared with a 95 per cent mortgage, although any savings will depend on the mortgage available, property price and final scheme terms.
How could it help?
A smaller deposit could make saving for a first home feel more achievable. For illustration, on a £250,000 home, a 2.5 per cent deposit would be £6,250, compared with £12,500 at five per cent. For buyers balancing rent, bills and everyday expenses, a lower savings target could help bring their first move closer.
The equity loan could also reduce the amount buyers need to borrow through a mortgage, potentially making monthly mortgage repayments more manageable during the initial interest-free period. For buyers who can afford repayments but are finding it difficult to build their savings, the combination of a smaller deposit and a smaller mortgage could make a first move feel more achievable.
A smaller mortgage wouldn’t automatically mean buyers could qualify on a lower income, however. The amount they could borrow would still depend on their lender’s criteria and personal circumstances, including existing financial commitments and dependants.
As the scheme is expected to apply to new build homes, it could also help more buyers enjoy the benefits of a brand-new home, including modern layouts, energy-efficient features and lower maintenance costs.
Understanding the equity loan
The equity loan would need to be repaid, and buyers would still need to meet their lender’s affordability requirements. Full repayment terms and any interest or charges after the initial interest-free period are yet to be confirmed.
What happens next?
The Budget on Wednesday 28th October 2026 is set to bring further details on Your First Home, including eligibility, costs and implementation timelines. A household income cap and local property price caps are planned, to help target support at first-time buyers who need it most. You can read the Government’s announcement for more information.
Taking your next step
For first-time buyers working towards a home of their own, Your First Home could bring a smaller deposit target and more manageable initial mortgage payments within reach, subject to the final terms and official launch.
At Allison Homes, we’re following the plans closely and look forward to learning more about how the scheme could support first-time buyers.
In the meantime, we already offer other ways to help first-time buyers, including our Friends and Family Deposit Match scheme. This can match a gifted deposit with a contribution of up to five per cent of the purchase price on selected homes, subject to terms and availability. Explore our Ways to Buy page to find out more about the support available.
Allison Homes Web Article: 12th October 2026
