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First Homes Schemes

First Homes Schemes in England and Scotland are designed to help make buying a first home more affordable for your clients.

Another way your client could get to ''yes''

For some of your clients, taking that first step onto the property ladder can feel out of reach. First Homes Schemes in England and Scotland could help bring home ownership closer.

The schemes are designed to make buying a first home more affordable for eligible buyers. We support both and can lend through them.

Each scheme has different rules and eligibility criteria. Here's what you need to know.

How does the First Homes England Scheme work?

  • Clients can get a discount of 30% to 50% off the market value of a home, as determined by an independent valuer.
  • The discount stays with the property when it's sold, helping future first-time buyers benefit too.

Your client will need:

  • a deposit of at least 5%
  • a mortgage covering at least 50% of the discounted purchase price.

Visit the English government website to see more about the First Homes England Scheme.

Who is eligible for the First Homes England Scheme?

National criteria (everyone must meet this):

  • all applicants must be first-time buyers
  • their household income must be no more than £80,000 a year (£90,000 if they’re buying in London)
  • they will need to have a mortgage (or home purchase plan) covering at least 50% of the discounted purchase price
  • after the discount has been applied, the home costs no more than £250,000 (£420,000 in London)
  • the property must be either a new-build home or a property that was previously bought through the scheme.

Local authorities can also apply their own criteria:

  • they may set a lower household income limit if they can show it's needed
  • they may set a lower maximum purchase price
  • they may require your client to have a local connection, such as living, working or having family in the area. Members of the armed forces, recent veterans and their families are exempt from these local connection requirements
  • they may choose to give priority to key workers.

How does the Scottish First Home Fund Scheme work?

  • Your client gets up to £10,000 towards buying their first home, as long as the property is worth no more than £300,000.
  • The Scottish Government contributes towards the cost of the property. In return, it owns a share of the property based on how much it contributes.

Your client will need:

  • a deposit of at least 5%
  • a mortgage covering at least 25% of the property's purchase price or valuation (whichever is lower).

Visit the Scottish government website for more about the Scottish First Homes Fund Scheme.

Who is eligible for the Scottish First Homes Scheme?

  • At least one applicant must be a first-time buyer.
  • No maximum household income limits.
  • They will need to have a mortgage covering at least 25% of the property's purchase price or value.
  • The home costs no more than £300,000.
  • The home can be a new build or existing property - as long as it's in Scotland.

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