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Summary
First Home Scheme
First Homes is a government deal that lets first-time buyers purchase certain new-build homes with at least 30% off the normal price. You must live in the home (not rent it out), and your local council has to approve you. There can be extra rules like income limits or giving priority to key workers or local residents. You still need a mortgage based on the discounted price, and when you sell in future you usually have to pass on the same discount to the next eligible buyer. We’ll check if you qualify, get you a soft-search Mortgage in Principle fast (no impact on your credit score), and coordinate the paperwork with the developer, council and solicitor so you can reserve with confidence. Read more HERE on the Government website.
What is the First Home Scheme
- Government scheme offering at least 30% (up to 50%) off selected new-build homes.
- Price cap after discount: up to £250,000 (most of England) or £420,000 (Greater London).
- Eligibility headline: first-time buyers only, income ≤ £80,000 (or ≤ £90,000 in London), buying as your main residence, and taking a mortgage for at least 50% of the discounted price.
- Local councils can set extra rules (e.g., local connection, key worker priority).
The home is:
- a new home built by a developer
- a home, previously bought through a scheme, even if resold through an Estate Agent
Why Use a Broker?
Fast, Free, Friendly advice from award winning brokers with access to exclusive products and schemes.
- Lenders treat the discount and any builder incentives differently; we line up lenders who accept the scheme and your timescales.
- We confirm warranty, lease and service-charge details early (vital for flats).
- We coordinate with your developer, council and solicitor to keep deadlines on track.
Eligibility Checklist:
- You (and any joint buyer) are first-time buyers.
- Household income ≤ £80k (≤ £90k in London).
- Buying a new build as your only home (not BTL).
- Mortgage covers ≥ 50% of the discounted price.
- Local criteria may apply (e.g., live/work locally, key worker priority).
- Resale restriction: when you sell, you must pass on the same % discount to the next eligible buyer
Local eligibility criteria
Councils must give permission, and they may set some of their own eligibility criteria. Some councils may prioritise certain groups such as:
- key workers
- local people living in the area
- lower income levels
This can apply if buying with others:
- all buyers must meet local income criteria
- maybe just one of you meets the local criteria
This local criteria may only apply during the first 3 months that a property is on sale. Essentially, creating a priority group.
Local Exemptions for armed forces and their families
You qualify outside of being a key worker if you are:
- a member of the armed forces
- a former spouse or civil partner who’s divorced or separate from a member of the armed forces
- a widow or widower of a deceased member of the armed forces (if their death was caused wholly or partly by their service)
- a veteran who left the armed forces in the last 5 years
- You still need to meet all other First Homes eligibility criteria.
Example Maths:
- Market value: £300,000
- 30% First Homes discount: £90,000
- Your purchase price: £210,000
- 10% deposit on discounted price: £21,000
- Mortgage needed: £189,000 (meets 50%+ rule)
Note: SDLT is usually assessed on the discounted purchase price. First-time buyer relief may apply; your conveyancer will confirm exact treatment for your case.
Key Nuances Lenders Look At
- Discount + incentives: We check what’s allowed (cash contributions, upgrades) and how it affects loan-to-value and affordability.
- Local rules: Some councils add caps or priorities — we confirm early to avoid delays.
- Flats & leasehold: Ground rent, service charge and EWS1 can change lender choice; we pre-screen.
- Offer timelines: New builds complete “on notice”; we plan for offer validity/extension if the build slips.
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