How Is "Your First Home" Scheme Different?

How does it compare with Help to Buy and First Homes?

Your First Home is being described as the new Help to Buy, and the structure is similar. There are differences though.

How they work

The three equity loan schemes work in broadly the same way. Your First Home lends 20% of the price. Both Help to Buy schemes lent up to 20%, rising to 40% in London (from 2016 under the original scheme). First Homes is different; rather than a loan, it gives a permanent discount of 30% to 50% off market value.

Who qualifies?

Who can use them has reduced over time. The original Help to Buy (2013 to 2021) was open to any buyer, provided the new home would be their only home. Its 2021 to 2023 successor, Your First Home and First Homes are all for first-time buyers only. Neither Help to Buy scheme had an income cap; affordability was checked instead. Your First Home caps household income at £110,000 (£140,000 in London), and First Homes at £80,000 (£90,000 in London).

What you can buy?

The original Help to Buy was strictly for new build developments from registered builders. The 2021 to 2023 scheme widened this to include converted commercial premises and conversions of buildings never used as homes (it expressly excluded properties split into flats). Your First Home covers new builds from participating developers, but whether conversions count is not yet confirmed. First Homes covers new builds and resales of existing First Homes.

Deposits

Your First Home asks for just 2.5%, half the 5% minimum under both Help to Buy schemes. First Homes sets no national minimum deposit, but your mortgage must cover at least half the price.

Price caps

Price caps vary widely. Your First Home caps are set for each local authority area: £375,000 in Reading and £220,000 in Middlesbrough, for example, with £650,000 in inner London and £500,000 in outer London. Help to Buy 2021 to 2023 used regional caps, from £186,100 in the North East to £600,000 in London. The original scheme had a single £600,000 cap everywhere. A First Home cannot cost more than £250,000 after the discount (£420,000 in London).

The cost

The cost of borrowing is where Your First Home is most predictable. Its loan is interest-free for five years, then charged at 1.5% in year 6 and 3% from year 7. Both Help to Buy schemes charged 1.75% from year 6, rising every year after that. The increase was CPI plus 2% under the 2021 to 2023 scheme and RPI plus 1% under the original. First Homes charges no interest, because there is no loan.

Repayment

The equity loans are all repaid on the same principle: you repay the same percentage of your home’s value as you borrowed. Under Help to Buy, that fell due on sale or after 25 years. Under Your First Home, repayment is expected on sale with early repayments allowed, but the detailed terms are still to be published. 

With First Homes nothing is repaid; instead, the discount passes to the next buyer when you sell.

Availability

Both Help to Buy schemes are closed. First Homes is open, though supply is limited. Your First Home opens for pre-registration by the end of December 2026, with applications from February 2027 and the first sales in April 2027.