First-Time Buyers: Your 2027 Roadmap

Deposits, government schemes and what lenders look for when you buy your first home.

In this guide

The schemes open to first-time buyers, and what's coming
What lenders assess, and how much deposit you need
A fictional, illustrative case study

Buying your first home in 2027

Getting onto the ladder takes planning, but there is more help available than many buyers realise. Government-backed schemes support low-deposit mortgages, first-time buyers pay less stamp duty, and lenders increasingly accept a wider range of incomes and deposit sources.

95%Maximum loan-to-value under the permanent Freedom to Buy scheme (homes up to £600,000)

£300,000First-time buyers pay no stamp duty up to this amount in England and NI

2.5%Deposit proposed under the new Your First Home scheme for new-build homes

Schemes open to you

Freedom to Buy (Mortgage Guarantee Scheme). A permanent Government guarantee, launched in July 2025, that supports 95% mortgages (5% deposit) on homes up to £600,000.
Shared Ownership. Buy a share of a home, typically 10–75%, and pay rent on the rest, with the option to buy more over time.
First Homes (England). Selected new-build homes at a discount of at least 30%, with price caps of £250,000 (£420,000 in London). Availability is limited.
Lifetime ISA. A 25% Government bonus on savings of up to £4,000 a year towards a first home costing up to £450,000. The Government plans to replace it with a new First Time Buyer ISA; existing accounts can still be used.

What's Coming

Your First Home. Announced in September 2026, this new-build scheme would let eligible first-time buyers in England buy with a 2.5% deposit, supported by a 20% Government equity loan. Income and price caps apply; details and pre-registration are expected from late 2026.

Fairer affordability rules. The FCA has consulted on changes that would help first-time buyers with variable or irregular income, with final rules expected in late 2026.

Check after the Budget. The Autumn Budget on 28 October 2026 may change schemes or tax. We will confirm the latest position when we speak.

Stamp duty for first-time buyers

In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000. Relief is lost entirely above £500,000. Scotland's first-time buyers pay no LBTT up to £175,000; Wales has no separate relief, but no LTT is payable on homes up to £225,000.

What lenders want to see

Lenders assess your income, regular spending, credit history and deposit, including where the deposit came from. Gifts from family are common but need a signed gift letter and proof of funds. Having

payslips, bank statements and ID ready before you view properties can make the difference in a competitive market.

Illustrative example · not a real client

Using two schemes together: a fictional case study

Jack and Amelia, both 29, had saved into Lifetime ISAs for three years. With a small gift from Amelia's parents, they had a 10% deposit for a £270,000 flat in Milton Keynes. Their broker found a competitive 90% mortgage and confirmed they would pay no stamp duty under first-time buyer relief.

Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.

Ready to take your first step?

Speak to a CeMAP-qualified OMB adviser: whole-of-market advice, with any fee confirmed in writing before you proceed. Read more about first-time buyer mortgages.

Start your enquiry 0203 971 1234

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Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.