Details published on 28 October 2026 explain how England's planned Your First Home scheme would combine a smaller buyer deposit with a mortgage and a government equity loan. Applications are not open yet. For a possible 2027 purchase, the useful task now is to understand both the upfront funding and the later costs.

The announced deposit and eligibility limits

The Budget's housing section sets a minimum deposit of 2.5% and a maximum of 15%, alongside government equity loans described as 20% of the purchase price. Announced household income limits are £110,000 outside London and £140,000 within London, with property price caps varying by area.

The scheme guidance describes first-time buyers purchasing an eligible new-build home in England as their main home, using participating developers and mortgage lenders. Full eligibility rules and the lists of participating developers and lenders are still to come.

Check the price cap for the home

On 3 November 2026, the government published the property price caps for local authorities in England. For example, the cap is £235,000 in Liverpool, £315,000 in Birmingham and £650,000 in Camden. Look up the council for the new-build property using its postcode, then compare the purchase price with that council’s entry in the official price-cap table. A price within the cap meets only the price test. You still need to check the home, developer and mortgage lender against the scheme rules.

When could a purchase happen?

The published timetable aims for pre-registration by the end of December 2026, applications from February 2027 and first sales from April 2027. Exact opening days have not been announced. These dates do not provide a completion date for an individual home or a reason to commit to a removal booking now.

The equity loan has later costs

The guidance says the equity loan is interest-free for five years, with 1.5% interest in year six and 3% from year seven. That interest is separate from mortgage payments and does not pay down the equity loan itself.

Repayment normally tracks the percentage of the property's value represented by the loan, based on an independent valuation. The cash amount can therefore rise or fall. Full repayment terms, including applicable fees, are still to be published.

For illustration, a £240,000 purchase with a 2.5% deposit and 20% equity loan would use £6,000 cash, £48,000 equity borrowing and a £186,000 mortgage, before fees. If the same 20% share were repaid when the home was valued at £260,000, it would be £52,000. This arithmetic does not identify an eligible property or constitute a loan offer.

Build a budget that includes both loans

Use our mortgage repayment calculator for the mortgage component only. Keep the equity loan's interest and eventual repayment separate; that calculator does not model this scheme.

GOV.UK's buying guidance explains that affordability also depends on income, outgoings and possible changes in circumstances. Put purchase fees, removals and housing overlap into your moving budget, alongside the deposit savings target. Review the new-build buying guide and confirm scheme participation, final terms and lender approval before relying on the scheme for a purchase.