STORY
The Government has announced a new equity loan scheme intended to help first time buyers in England purchase newly built homes with deposits of 2.5 per cent. Your First Home is expected to provide a Government backed equity loan worth 20 per cent of the property value, reducing the size of the conventional mortgage required.
The equity loan will include an initial interest free period and will be available only on homes sold by participating developers. Ministers say the scheme will be targeted through household income limits and local property price caps, while developers will be expected to contribute towards its costs.
Chancellor John Healey will confirm the full terms, cost and implementation timetable in the Budget on 28 October. The Government says registration will open by the end of 2026 and argues that the scheme will address the deposit barrier while supporting demand for new homes during a difficult period for housebuilders.