If you’re hoping to buy your first home, today’s Budget brings good news. The government has confirmed the details of Your First Home, a £4.7 billion scheme that lets first-time buyers in England purchase with a deposit of just 2.5%.
Here’s what it means for you.
How Your First Home works
The government lends you up to 20% of the price of your home. You pay no interest on that loan for the first five years.
| Government loan | Up to 20% of the price |
| Interest | None for five years, then rising gradually |
| Your deposit | From 2.5% (up to 15%) |
| Income limit | £110,000 per household, or £140,000 in London |
| Price limit | Set locally; £500,000 in outer London, £650,000 in inner London |
| Who can apply | First-time buyers in England who couldn’t otherwise afford to buy |
The government says this could save a typical buyer hundreds of pounds a month compared with a standard mortgage. Developers pay to join the scheme, and funding is capped each year, so it’s worth registering early.
Key dates
- By end of December 2026: Your First Home opens for pre-registration
- February 2027: full applications open
- April 2027: first loans issued
Saving for a deposit
New First Time Buyer ISA (from April 2029). Save up to £4,000 a year and get a 25% government bonus, up to £20,000, when you buy a first home worth up to £450,000. There’s no upper age limit. It replaces the Lifetime ISA for new savers.
Already have a Lifetime ISA? You can keep using it as now. From 29 October 2026, if you buy a home above £450,000, the withdrawal charge drops from 25% to 20%.
Cash ISAs. The £20,000 annual limit stays. Savings held outside an ISA will be taxed more from April 2027, so it’s worth keeping your deposit in one.
Stamp Duty: no change
First-time buyer relief stays the same. In England and Northern Ireland you pay no Stamp Duty on the first £300,000, and 5% on the portion between £300,000 and £500,000. Homes over £500,000 don’t qualify for the relief.
What it means for your purchase
Buying with an equity loan involves extra paperwork and checks, so it can take a little longer. If you plan to use Your First Home:
- Pre-register as soon as it opens
- Tell your conveyancer and mortgage broker from the start
- Allow extra time before your completion date, especially in the scheme’s first months
When you’re ready to buy, we’re here!
Buying your first home is a big step, and we’re here to make it as smooth as possible. When you instruct PLS, you get:
- A dedicated case handler who knows your purchase and keeps you updated from offer to keys
- 24/7 online portal where you can track progress, and read and sign documents whenever suits you
- AI-integrated technology that cuts out delays and keeps your case moving
Ready to get started? Call us on 0330 024 4536 or get a free conveyancing quote here
This article is general information, not legal or financial advice.
