Publish Date: 28 September 2026
Breaking Down The Deposit Barrier
We know that the biggest hurdle to homeownership usually isn't affording the monthly repayments, it's scraping together that initial deposit. That’s why we are incredibly excited to talk about the government’s latest announcement: the Your First Home scheme.1 Announced by Andy Burnham on 26 September 2026, this brand-new initiative is designed specifically to help aspiring homeowners in England get the keys to their first home much sooner than they thought possible. Here at Mortgage Winners, as your completely fee-free mortgage broker, we’ve dug into the official government announcement to break down exactly what this means for you.
What Is The 'Your First Home' Scheme?
In a nutshell, Your First Home is a new government-backed equity loan scheme. If you are struggling to save up a traditional five or ten per cent deposit while paying rent, this initiative could provide the much-needed support to bridge the gap. Under this new scheme, you will only need to save a 2.5% deposit of the property's purchase price. The government will then boost your purchasing power by providing a 20% equity loan, leaving you to take out a standard mortgage for the remaining balance. It is important to note that this scheme is exclusively available for the purchase of newly built homes from developers who sign up to participate.
How Does It Save You Money?
Aside from drastically reducing the time it takes to save a deposit, the scheme is designed to make your monthly outgoings much more manageable. Because the government is lending you a fifth of the property value, that equity loan will come with an initial interest-free period. On top of that, taking out a mortgage for a smaller portion of the property's value usually gives you access to much better interest rates from lenders than you would typically get with a standard 95% mortgage. The government estimates that this combination could save buyers hundreds of pounds every single month.
Who Will Be Eligible?
While the Chancellor will be confirming the full nuts and bolts at the upcoming Budget, we already have a good idea of who will qualify. You must be a first time buyer purchasing a property in England. To ensure support goes to the young people and families who truly need it to get onto the ladder, the government will introduce both a household income cap and local property price caps. This means the maximum price of the home you can buy will depend on the region where you plan to live.
What Should You Do Next?
Full details, including exactly when the scheme will officially launch, will be revealed at the next Budget. However, that doesn't mean you should sit on your hands. If you are hoping to buy in the near future, now is the perfect time to get your finances mortgage-ready. That is exactly where Mortgage Winners can help. As a fee-free mortgage broker, it costs you absolutely nothing to get expert advice from our team. We can sit down with you to review your current savings, assess whether you are on track for a 2.5% deposit, review your credit history, and calculate what your monthly repayments and overall affordability might look like.
Getting on the property ladder doesn't have to be a distant dream. While the ‘Your First Home’ scheme is on the horizon, there are other lender schemes already available right now to help, meaning your first set of keys could be closer than you think. Contact our expert team today to book your free, no-obligation chat and let's get you ready to make your move!
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