Short answer
Your First Home is a new government equity-loan scheme for first-time buyers of participating new-build homes in England. You put down a deposit of at least 2.5%, get a mortgage from a participating lender, and the government lends 20% of the price, interest-free for the first five years. Pre-registration opens by the end of December 2026, applications from February 2027 and first loans from April 2027.
How it works
The £4.7 billion scheme aims to help around 70,000 households in England buy their first home, using 20% equity loans for first-time buyers who would not otherwise be able to buy. Budget 2026
Your purchase is funded by your deposit (at least 2.5%), a mortgage and the government equity loan (20% of the price). Fees and interest apply after the first five years. Your First Home
Key dates
Pre-registration: by the end of December 2026.
Full applications: from February 2027.
First loans issued: from April 2027. Funding is capped each year.
What an equity loan really means
The loan is linked to your home's value, not a fixed sum. If your home rises in value, the amount you repay rises too; if it falls, it falls.
Compare the full cost: deposit, mortgage, the equity loan and its later interest and fees, and how you'll repay it — not just the smallest deposit.
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Questions
Questions people also ask
Who can use Your First Home?
First-time buyers purchasing a participating new-build home in England who meet the scheme's eligibility rules.
How much deposit do I need?
At least 2.5% of the purchase price, alongside a mortgage and a 20% government equity loan.
Is the equity loan interest-free?
For the first five years. After that, charges apply — check the official terms before committing.
When can I apply?
Pre-registration opens by the end of December 2026, full applications from February 2027, and first loans from April 2027.