Your First Home scheme: what first-time buyers need to know after the September 2026 announcement
The government has announced plans for a new equity loan scheme aimed at helping first-time buyers onto the property ladder. Called Your First Home, the scheme could allow eligible buyers to purchase a new-build property with a deposit of just 2.5%, although full details are still due to be confirmed at the forthcoming Autumn Budget.
If you are thinking about buying your first home, our experienced conveyancing solicitors are happy to explain what this could mean for you.
Saving for a deposit is one of the hardest parts of buying a first home. So it is no surprise this news has got people talking. This guide explains who the scheme is for, how it is likely to work and what the legal side involves. We will update it as soon as the Autumn Budget confirms the details.
What the Your First Home scheme is
The Ministry of Housing, Communities and Local Government shared the main points in its announcement of the Your First Home scheme. The scheme is expected to offer:
- A deposit of just 2.5% of the price.
- A government-backed equity loan of 20% of the price.
- No interest on the equity loan for an initial period.
- A cap on household income and local caps on property prices.
The government says buyers could save hundreds of pounds a month compared with a 95% mortgage. The proposal works in a similar way to Help to Buy, which closed to new applications in 2022 and needed a minimum deposit of 5%. We will learn more at the Autumn Budget on 28 October, including the income cap, the price caps, how long the interest-free period lasts, how repayments work and when the scheme opens.
Who is eligible for the Your First Home scheme
The scheme is for first-time buyers in England. You will need to buy a new-build home from a developer that has signed up. There will be a limit on household income and a cap on the price of the home, which will vary by area. The full rules, including those for joint buyers, will be confirmed at the Autumn Budget.
How the Your First Home scheme works
Here is an example of how the numbers could look on a £250,000 new-build home. It is only a guide, as the final rules may differ.
| Funding | Share of price | Amount |
|---|---|---|
| Your deposit | 2.5% | £6,250 |
| Government equity loan | 20% | £50,000 |
| Your mortgage | 77.5% | £193,750 |
| Total | 100% | £250,000 |
With a standard 95% mortgage, you would need a £12,500 deposit and a £237,500 mortgage.
It is important to remember that the equity loan is a loan, not a gift. You will need to pay it back. Under Help to Buy, the amount you repaid was linked to the value of your home. So if your home went up in value, you paid back more. The government has not yet set out the repayment rules for Your First Home. We will help you understand them once they are published.
Costs after the interest-free period
The equity loan will start with no interest to pay. We do not yet know how long this will last or what you will pay after it ends. These costs could make a big difference over time, so we will add them to this guide as soon as they are announced.
How the scheme fits with your mortgage and deposit
You will need a mortgage from a lender that takes part in the scheme. The lender will look at your income, your spending, your credit history and whether you can afford the payments. As you borrow less, your monthly mortgage payments could be lower. Even so, whether a lender will offer you a mortgage still depends on its own rules and the final scheme rules. Under Help to Buy, your lender had the first legal charge over your home and the government had a second charge for the loan. A charge is a legal right over the property that secures what you owe. Your First Home may work the same way, but this has not been confirmed yet.
If family are helping with your deposit, that is fine. Your lender and solicitor will just need a signed gift letter and proof of where the money came from.
The conveyancing process for first-time buyers
Conveyancing is the legal work that makes a home yours. Buying a new-build with an equity loan adds a few extra steps. Here is how we will guide you through it:
- Getting started. We check your ID and where your deposit has come from. We also give you a clear quote of costs.
- Checking the contract. We look at the contract, plans, planning permission and building regulations sign-off. We also check any rules on what you can do with the property and the 10-year building warranty.
- Searches. We carry out local council, drainage and environmental searches. We check whether the council and water company will take over the roads and sewers, or whether you will pay an estate charge.
- The equity loan. Once the legal rules are published, we will explain the loan agreement and what it means for you. We will also help with the forms and deadlines.
- Your mortgage. We report to your lender and confirm the home is suitable for the loan.
- Exchange and completion. We exchange contracts for you. Then we complete when the developer tells us the home is finished.
- After you move in. We pay any Stamp Duty Land Tax and register you as the owner at HM Land Registry.
If you are buying a leasehold flat, we will also check the length of the lease, the service charge and any ground rent. Our leasehold team can help with this.
Working with conveyancing solicitors in Norwich
Many new-build homes across Norfolk and Suffolk are sold to first-time buyers, including in Norwich, Wymondham and Lowestoft. Developers often set tight deadlines once you reserve. Choosing local conveyancing solicitors in Norwich means you can meet us face to face. We also have offices in Wymondham and Lowestoft. We know the local councils and developers well, and we will keep you updated at every stage.
Timescales and costs
Developers often ask you to exchange contracts within 28 to 42 days of reserving. The time can vary. Your mortgage, legal questions and the scheme paperwork can all affect how quickly things move, so it helps to contact a solicitor on the day you reserve. If the home is still being built, you may complete weeks or months after exchange. When you buy off-plan, we check the contract has a long-stop date. This is a final deadline that protects you if building work runs very late.
As well as your deposit, it is worth setting money aside for:
- Legal fees and search fees.
- The HM Land Registry fee.
- Mortgage fees.
- The developer’s reservation fee.
- Removal costs.
You can see our costs on our fees and service information page – or please contact us for a tailored quote.
Stamp Duty Land Tax is based on the full price of the home, not just the amount of your mortgage. First-time buyers in England currently pay:
| Purchase price | Stamp Duty Land Tax |
|---|---|
| Up to £300,000 | No tax |
| £300,001 to £500,000 | 5% on the part above £300,000 |
| Over £500,000 | Standard rates on the full price, no first-time buyer relief |
To get this relief, every buyer must be a first-time buyer. The home must also be your only or main home.
Getting ready with Fosters Solicitors
There are a few things you can do now while you wait for the final rules:
- Keep saving.
- Check your credit file.
- Gather recent payslips and bank statements.
- Speak to a mortgage adviser.
Buying your first home is a big step, and it is normal to have lots of questions. The residential property team at Fosters Solicitors is here to help, whether you are ready to reserve or just want to know your options. Please get in touch for a friendly chat and a clear quote.
FAQs
What is the Your First Home scheme?
The Your First Home scheme is a government equity loan for first-time buyers in England. It was announced on 26 September 2026. It should let you buy a new-build home with a 2.5% deposit and a 20% government-backed loan.
When does the Your First Home scheme start?
The government will share the start date at the Autumn Budget on 28 October 2026. You cannot apply yet.
Can I use the Your First Home scheme to buy an older home?
Based on the September 2026 announcement, the scheme is for new-build homes sold by developers that have signed up. It is not for older homes.
Do I need a solicitor for a Your First Home purchase?
Yes. A conveyancing solicitor will handle the legal work for your purchase, mortgage and equity loan. They will also register you as the owner at HM Land Registry.
This article was produced on the 23rd October 2026 for information purposes only and should not be construed or relied upon as specific legal advice.
