You save a smaller deposit
A deposit is the money you put towards your home yourself. The scheme is expected to allow a deposit of 2.5% of the price.
Your First Home
scheme explained
A smaller deposit could bring your first home closer.
Saving for your first home can feel like a long way to go. A new government scheme could help you get there with a smaller deposit.
We’ll explain what’s been announced, what we’re still waiting to hear and what it could mean for you.
Illustration only — coloured areas are not to scale.
2.5% deposit20% government loan77.5% mortgage
A deposit could be as little as2.5%Subject to the final scheme rules
The Autumn Budget
28 October 2026 · 12:30pm UK time
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More details are due to be announced.
Is the scheme for you?This scheme is for eligible first-time buyers in England buying a new-build home.Find out what mortgage is right for you
What is the Your First Home scheme?
The government has announced a way to buy an eligible new home with a smaller deposit and an extra loan towards the price.
A government loan helps
A government-backed loan is expected to cover 20% of the price. This is borrowed money, not a gift, and will need to be repaid.
A mortgage covers the rest
A mortgage is a loan to buy a home. You make monthly repayments. A lender will still check what you can afford. You can estimate your monthly mortgage repayments with our calculator.
A home costing £250,000
Your deposit£6,2502.5% of the price
Government loan£50,00020% of the price
Mortgage£193,750The remaining 77.5%
Here’s how the announced figures could fit together.
Is Your First Home the new Help to Buy scheme?
If you’re searching for the new Help to Buy scheme, Your First Home is the new government-backed scheme to understand.
It has a similar idea: your savings and mortgage are supported by a separate government-backed loan towards the home’s price. But Your First Home is a different scheme. We shouldn’t assume that the old Help to Buy rules, charges or repayment arrangements will apply.
The former Help to Buy equity-loan scheme in England is closed to new applications. Your First Home also differs from the Help to Buy ISA, which is a savings account, and First Homes, which offers a discount on eligible homes.
Read the official Your First Home announcement ↗Who could qualify for Your First Home?
The announced scheme is aimed at first-time buyers buying a new-build home in England from a developer signed up to the scheme.
- Household-income and local home-price limits will apply, but the amounts are still to be confirmed.
- The scheme’s exact definition of a first-time buyer is still to be published.
- A mortgage lender will carry out an affordability check, looking at your income, spending, debts and credit history.
Don’t assume you qualify or rule yourself out yet. We’ll explain the final rules when they are available.
What does a 2.5% deposit mean in pounds?
It means saving £2,500 for every £100,000 of the home’s price.
| Home price | 2.5% deposit |
|---|---|
| £200,000 | £5,000 |
| £250,000 | £6,250 |
| £300,000 | £7,500 |
You’ll need to allow for other buying and moving costs too.
How would the government loan work?
The announced loan is expected to cover 20% of the home’s price, with an initial interest-free period. It is borrowed money, not a gift.
The length of that interest-free period, later charges and full repayment rules have not yet been confirmed. With an equity loan, the amount you repay can be linked to your home’s value. We’ll explain exactly how Your First Home handles this when the rules are published.
A smaller deposit means less of your own money is invested at the start. If the home’s value falls, you could owe more than it is worth. Look at the mortgage, separate loan and other costs together before deciding.
What can you do while you’re waiting?
- Work out your savings. Separate the deposit from money needed for legal fees and moving.
- Look at your monthly budget. Include bills and other commitments alongside mortgage payments. Try our mortgage repayment calculator to explore example monthly payments. You can also read MoneyHelper’s mortgage affordability guidance.
- Gather your documents. Recent payslips or accounts, bank statements and identification are useful starting points.
- Discuss your options. Justin can help you understand what you could borrow and whether another route may suit you.
WHAT HAPPENS NEXT?We’ll turn the Budget
We’ll turn the Budget
details into plain English.
On 28 October, we’ll update this page with the details announced in the Budget. If you’ve signed up using “Keep me updated”, we’ll email you an update too.
Read the government announcement ↗We’re waiting to hear:
◷ When you can apply
◷ The income and home-price limits
◷ Which homes and developers will qualify
◷ When interest starts and how the extra loan is repaid
Justin MoyEHF Mortgages
Get an idea of what you can borrow today
Talking to Justin is free and will give you a better understanding of what you could borrow and which mortgage could be right for you.
Justin has access to mortgages from across the market, including high street banks and specialist lenders. Find out which could suit you best.
Find out your optionsBook your free, no-obligation 30-minute call with Justin.
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A few frequently asked questions
What is the new Help to Buy scheme now called?
Your First Home is the name of the newly announced government-backed equity-loan scheme for first-time buyers in England. If you’re looking for “the new Help to Buy scheme”, this is the scheme to read about. It has its own rules; the old Help to Buy scheme has not reopened. Read how Your First Home differs from Help to Buy.
Can I apply for Your First Home now?
Full application details and timing have not been confirmed. You can sign up for EHF updates or talk to Justin about preparing to buy.
Is the government loan free money?
No. It is a loan that will need to be repaid. An initial interest-free period has been announced, but its length and the full repayment terms are still to be confirmed.
Can I use it to buy any home?
The announced scheme is for eligible new-build homes in England from developers signed up to the scheme. Local home-price limits and other rules are still to come.
What if I’m not sure whether I qualify?
That’s completely understandable while the rules are still being finalised. You can receive updates or speak to Justin about your circumstances and other options.
Is this a government website?
No. This website is provided by EHF Mortgages, an independent mortgage advice business. Our updates signup is separate from any official scheme registration.