Your First Home calculator
Reviewed by the HomeBuyingCosts team · Last reviewed 29 October 2026 · Independent, not GOV.UK
Calculator checked against GOV.UK rules and worked examples on (how we check).
Your First Home lets first-time buyers of new-build homes in England buy with a 2.5% deposit and a government equity loan of 20% of the price, interest free for 5 years. On a £300,000 home that is a £7,500 deposit, a £60,000 loan and a £232,500 mortgage. It was announced in Budget 2026; applications are expected from February 2027 and the first sales from April 2027.
| Deposit (2.5% minimum) | £7,500 |
| Government equity loan (20%) | £60,000 |
| Mortgage | £232,500 |
| Monthly in year 6 (plus 1.5% fee on the loan, £75 a month) | £1,323 |
| Monthly from year 7 (3% fee, £150 a month) | £1,398 |
Repayment mortgage at 5.00% over 30 years. The loan fee is interest on the equity loan and does not reduce what you owe. A 95% mortgage would usually cost a higher rate than we assume.
What you repay: 20% of the value when you sell
| If the home is then worth | You repay |
|---|---|
| Value falls 10%: £270,000 | £54,000 |
| Same value: £300,000 | £60,000 |
| Value rises 10%: £330,000 | £66,000 |
| Value rises 25%: £375,000 | £75,000 |
How the numbers work
You put down at least 2.5% of the price and the government lends 20%. A participating lender provides a repayment mortgage for the rest.
The equity loan is interest free for years 1 to 5. In year 6 you pay a fee of 1.5% of the loan a year, and 3% from year 7. On a £60,000 loan that is £75 and then £150 a month. The fee does not reduce what you owe.
GOV.UK's own example for a £300,000 home gives £1,248 a month in years 1 to 5, £1,323 in year 6 and £1,398 from year 7, against £1,530 on a 95% mortgage. Our calculator gives the same figures with a 5% rate over 30 years; the guidance does not say which rate it used, so change ours to your own quote.
What you repay
The loan is repaid as 20% of the home's value at the time, usually when you sell, based on an independent valuation. You can repay some or all of it earlier. If the home rises in value, you repay more than you borrowed; if it falls, less.
Who can use it
- First-time buyers of a new-build home in England, as your main home, with a mortgage from a participating lender.
- Household income of £110,000 or less outside London, or £140,000 or less in London.
- A price cap that depends on where the home is. GOV.UK gives examples (below) and says a full list by local authority will follow.
- Not open yet: pre-registration by the end of December 2026, applications expected February 2027, first sales April 2027.
| Area (GOV.UK examples) | Price cap |
|---|---|
| Inner London | £650,000 |
| Outer London | £500,000 |
| Reading | £375,000 |
| Manchester | £355,000 |
| North Devon | £320,000 |
| Middlesbrough | £220,000 |
Costs on top
First-time buyers in England pay no stamp duty up to £300,000 and 5% on the part from £300,001 to £500,000. Legal fees, a survey and mortgage fees come on top of the deposit.
Questions
How much deposit do I need for Your First Home?
At least 2.5% of the price: £7,500 on a £300,000 new-build.
Is the Your First Home equity loan interest free?
For the first 5 years. Then you pay a fee of 1.5% of the loan in year 6 and 3% a year from year 7.
When does Your First Home open?
GOV.UK expects first applications in February 2027 and first sales in April 2027, with pre-registration by the end of December 2026.
Do I repay exactly what I borrowed?
No. You repay 20% of the home's value when you repay, so more if prices rise and less if they fall.
Budgeting for your first home?
The Home Buying Costs Pack (Edition 1.2, updated for Budget 2026) has every fee, a budget worksheet and the order things are paid. £4.99, one-off.
See the packSources
- GOV.UK: Your First Home (published 28 October 2026) (checked 29 October 2026)
- HM Treasury: Budget 2026 (checked 29 October 2026)