Your First Home Scheme: what the latest details mean for you
If you’re saving for your first home, it can be hard to know what help might be available. The Government has now shared more details about Your First Home, including who may be eligible, what the loan could cost over time and when applications are expected to open.
We’ve already covered how the scheme is expected to work. Here, we’re looking at what’s been confirmed since then, and what you might want to think about as you plan your next steps.
Check the income and home price limits
The scheme is intended for first-time buyers who would find it difficult to buy without support. You’ll normally need to buy an eligible new-build home in England and live in it as your main home.
The Government has set household income limits of £110,000 a year outside London and £140,000 in London. There’s also a maximum price for homes in each area. You can check the full list of local price caps to see the limit where you’re hoping to buy.
The home, developer and mortgage lender must all be part of the scheme. You’ll also need to meet the lender’s affordability and credit checks, so meeting the income and price limits doesn’t automatically mean you’ll be approved.
What will the loan cost after five years?
The scheme is expected to help buyers use a deposit of at least 2.5%, alongside a Government equity loan worth 20% of the home’s price and a mortgage for the rest.
There’s no interest on the equity loan for the first five years. After that, interest is set to be 1.5% in year six and 3% from year seven. These payments are separate from your mortgage, and they don’t pay down the loan itself.
It’s a good idea to think about how these extra payments could fit into your budget in the future, as well as what you can afford when you first buy.
What happens when you repay the loan?
You’ll usually repay the equity loan when you sell your home, but the Government says you may be able to repay some or all of it sooner.
The amount is normally linked to your home’s value when you repay. For example, if you borrowed 20% of the price and your home is worth £320,000 when you repay, 20% would be £64,000. The amount could be higher or lower than your original loan, depending on how your home’s value has changed.
When could you apply?
The Government expects pre-registration to open by the end of 2026. Applications are expected from February 2027, with the first home sales through the scheme anticipated from April.
The scheme isn’t open yet, and full terms are still to come. So, if you’re thinking about buying, you can use this time to explore your options and get a clearer idea of what may work for you.
Taking your first steps
You can browse Tilia’s new homes and speak to a local Sales Team about the homes available and what the buying process involves. Tilia Homes’ participation in Your First Home hasn’t been confirmed, but our team can talk you through the support currently available.
For the latest details, visit the Government’s Your First Home guidance.
Important information
This article is based on Government guidance published on 28 October 2026 and updated on 3 November 2026. It is correct as of 4 November 2026. The scheme has not launched, and its full terms, eligible homes, participating developers and lenders, and timetable may change. Tilia Homes’ participation has not been confirmed.
This information is not financial advice or a mortgage offer. Tilia Homes cannot provide financial advice. Consider speaking to an independent mortgage adviser and obtaining independent legal advice before making a financial commitment.