Eligible buyers will be able to use a deposit of at least 2.5% of the purchase price, a repayment mortgage from a participating lender and a government equity loan worth 20% of the purchase price. The equity loan will be interest-free for the first five years.
Interested in Your First Home and buying a new house Kingswood homes? Register your interest to receive updates as more information becomes available.
About the Scheme
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Under the scheme, an eligible home purchase could be funded through three sources:
- a deposit of at least 2.5%;
- a government equity loan worth 20% of the purchase price;
- a repayment mortgage from a participating lender.
GOV.UK gives the example of a £300,000 home. A 2.5% deposit would be £7,500, the government equity loan would be £60,000 and the repayment mortgage would be £232,500.
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The government says buyers will normally need to be first-time buyers purchasing a new-build home in England within the relevant local property price cap. The property must be their main home.
Total annual household income will normally need to be £110,000 or less outside London, or £140,000 or less within London. Buyers will also need to be able to obtain a mortgage from a participating lender.
Full eligibility rules are due to be published before applications open. Property price caps will vary by area, with the full local authority list also due to be published.
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The government equity loan is linked to the value of your home.
If the loan represents 20% of your home’s purchase price, you will normally repay 20% of its value when you repay the loan. This means the amount you repay can rise or fall if the value of your home changes. An independent valuation may be needed.
The equity loan will normally be repaid when you sell your home, although you will also be able to repay some or all of it before selling. Full repayment rules will be published before applications open.
The equity loan will be interest-free for the first five years. The government currently states an interest rate of 1.5% in year six and 3% from year seven. These interest payments are separate from your mortgage and do not reduce the equity loan itself.
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Yes. The government guidance states that you will own the home from the day your purchase completes. The government will not be a joint owner or your landlord.
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The scheme is expected to open for customer applications in February 2027, with the first property sales expected in April 2027. Government customer pre-registration and the first developer registrations are planned by the end of December 2026.
Applications are not open yet. The government says full guidance and terms and conditions will be published before the scheme opens.
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Participating lenders will carry out affordability and credit checks before deciding whether to offer a mortgage. GOV.UK also recommends that buyers consider obtaining independent financial and legal advice before committing to a purchase.
Full eligibility rules, further application guidance and complete terms and conditions are still to be published by the government.
Register Your Interest
Interested in Your First Home and a new Kingswood home?
Complete the form below to register your interest with Kingswood Homes. We can then keep you informed as further information about the scheme and its availability becomes known.
Registering your interest with Kingswood Homes is not an application for the Your First Home scheme or government customer pre-registration.