The government has announced Your First Home, a new scheme to help first-time buyers in England buy a new-build home with a much smaller deposit. Full details are due at the Autumn Budget on 28 October 2026, but there is plenty you can do now so you are ready to move quickly.
What we know so far
- 2.5% deposit: the proposed minimum deposit is 2.5% of the purchase price.
- 20% equity loan: a government-backed loan for 20% of the price, with a mortgage covering the remaining 77.5%.
- Interest-free start: the equity loan is expected to be interest-free for an initial period; the length and repayment terms are not yet confirmed.
- New-build only, England only: you would buy from a developer signed up to the scheme.
- Caps: a household income cap and local property price caps are planned, with levels still to be set.
The scheme is not open for applications yet. Reports suggest pre-registration could open by the end of 2026, but costs and timings will only be confirmed at the Budget.
Should you wait or buy now?
It depends on your plans. If you have your heart set on a new-build and your timeline is flexible, it may be worth seeing the Budget detail first. If you want an older property, need to move soon, or the right home comes up now, there are already options for first-time buyers, including 5% deposit mortgages, some lower-deposit products, family-assisted and gifted-deposit routes, and shared ownership.
Whichever route you take, lenders will still check that the monthly payments are affordable for you, and with a small deposit it is worth thinking about the risk of negative equity if prices dip, particularly on new-build flats.
Get ready before 28 October
Schemes like this can see strong early demand, and new-build reservations often come with tight deadlines. Having your paperwork and an agreement in principle lined up means you can act as soon as details are confirmed.
Quick tips
- Check your credit file and make sure you are on the electoral roll.
- Gather three months of payslips and bank statements (or two years of accounts if self-employed).
- Work out what you could borrow and what the monthly payment would look like, not just the deposit.
- Budget for the extras: legal fees, surveys, moving costs and any service charge.
- Compare new-build prices with similar resale homes nearby, as new-builds can carry a premium.
- Get an agreement in principle so developers know you are a serious buyer.
How OMB can help
Our CeMAP-qualified advisers compare lenders across the market and can help you weigh up Your First Home against the options available today. Start with our borrowing calculator, read our guide to getting a mortgage in principle, and see how we help on our first-time buyer mortgages page. Our first-time buyer costs checklist is a handy next read too.
We will update you as soon as the Budget confirms the details.
Sources
- GOV.UK (MHCLG): New first-time buyer scheme to be confirmed at Budget, 26 September 2026
- HomeOwners Alliance: Your First Home scheme – how it works, 29 September 2026
- Which?: Autumn Budget 2026 – when is it and what will it contain, 28 September 2026
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.