Your First Home: the new equity loan scheme

On 26 September 2026 the government announced Your First Home, an equity loan scheme in England for people buying their first home. The scheme is expected to be confirmed at the Budget, when the Chancellor is due to set out costs, who qualifies and when it will start.

Who the scheme is for

Your First Home is aimed at first-time buyers purchasing a new-build home from a developer that has signed up to the scheme. It is an owner-occupier scheme for homes in England.

The government expects it to support deposits of 2.5%, backed by a 20% government equity loan. Buyers would take that equity loan with an initial interest-free period. Ministers say people who use the scheme could pay hundreds of pounds less each month than on a 95% mortgage. That comparison depends on the interest-free period, the rate that follows it, and the fees — none of which have been published yet.

Income caps, price caps and developer contributions

The scheme is meant to be targeted. It will include a household income cap and local property price caps. Those figures will be set out at the Budget.

Developers will be expected to contribute when they sign up, to help meet the cost of the scheme. The size of that contribution has not been stated.

The government has also presented the scheme as support for the new-build market, which it says is under pressure from international economic conditions and rising construction costs.

What is still to be confirmed

Several points that decide whether a purchase stacks up are still open:

• The household income cap and the local property price caps
• How long the interest-free period lasts, and the rate charged after it ends
• How and when the equity loan has to be repaid
• Which developers can join, and what they must contribute
• When applications open

Treat the announcement as a statement of intent until the Budget sets those rules. If you are planning a first home and want to look at the tax and mortgage position alongside the scheme, contact us.