Your first home could be closer than you think!
Are you dreaming of owning your first home but struggling to save for a deposit?
The Government’s new Your First Home scheme is designed to help more first-time buyers take that exciting first step onto the property ladder.
With a deposit of just 2.5% and a 20% government-backed equity loan, buying your dream new-build home could be more achievable than you think.
The scheme is expected to open for applications in February 2027, with the first home purchases anticipated from April 2027.
What could the scheme offer?
- Just a 2.5% deposit – helping you take your first step onto the property ladder with less money upfront.
- 20% government-backed equity loan – reducing the amount you need to borrow through a mortgage.
- Five years interest-free – no interest to pay on your government equity loan for the first five years.
- Potentially lower monthly mortgage repayments – compared with purchasing the same home using a standard 95% mortgage.
- Access to eligible new-build homes – giving you the opportunity to find a place to call your own.
Could you be eligible?
The Your First Home scheme is designed for first-time buyers purchasing an eligible new-build home in England.
To qualify, you’ll generally need to:
- Be a first-time buyer.
- Have a total household income of £110,000 or less, or £140,000 or less in London.
- Purchase a new-build property within the relevant local house-price limit.
- Use the property as your main home.
- Be able to obtain a repayment mortgage from a participating lender.
Local property price caps will apply, and full eligibility requirements will be confirmed before applications open.
How could Your First Home work?
Imagine purchasing your first home for £300,000.
With the Your First Home scheme, your purchase could look like this:
| Amount | |
| Your 2.5% deposit | £7,500 |
| Government equity loan (20%) | £60,000 |
| Your mortgage (77.5%) | £232,500 |
| Total purchase price | £300,000 |
Rather than saving a £15,000 deposit for a standard 95% mortgage, you could take your first step with just £7,500.
The government equity loan is interest-free for five years. Interest then applies at 1.5% in year six and 3% from year seven.
The equity loan is linked to the value of your property, meaning the amount you repay may increase or decrease as your home’s value changes.
When will Your First Home be available?
The Government has confirmed the following expected timetable:
- December 2026 – Customer pre-registration opens.
- February 2027 – First applications are expected to open.
- April 2027 – First home purchases under the scheme are expected to take place.
Further details about participating developments will be released ahead of the launch.
Important information: Your First Home is a government equity loan scheme for eligible first-time buyers in England. The scheme is not yet open for applications and is subject to eligibility criteria, local property price limits, lender approval, developer participation and availability. The equity loan is interest-free for the first five years, after which interest charges apply. The amount repayable is linked to the property’s market value and may increase or decrease. Registering your interest with Acorn Property Group does not guarantee eligibility, access to the scheme or the availability of a qualifying Acorn home. Independent mortgage and legal advice is recommended.
