First Homes Scheme

To qualify, you must be a first-time buyer aged 18 or over and able to get a mortgage covering at least half of the discounted property price.

Your annual income must not exceed £80,000 (£90,000 in London). If buying with someone else, you must both be first time buyers and meet the joint income limit.

Some local councils may have extra criteria, such as prioritising key workers or local residents.

The scheme offers a minimum discount of 30% off the market value, but in some areas, this can go up to 50%.

The exact amount depends on local council policies and the type of property.

A surveyor will assess the home’s value to ensure the discount is applied correctly.

First Homes can be newly built properties sold by developers or homes previously purchased through the scheme and now being resold.

The home must be your only residence, and after the discount, it cannot exceed £250,000 (£420,000 in London), unless the local council sets a lower cap.

Yes, you’ll need a mortgage to purchase a First Home unless you can buy it outright.

Your mortgage must cover at least 50% of the discounted purchase price. A mortgage broker like us can help you find a lender that supports the scheme and provide mortgage advice tailored to your situation.

Not all lenders offer First Homes mortgages, so expert guidance can make the process smoother.

If you sell, you must offer the same discount you originally received to the next buyer. This keeps the property affordable for future first time buyers. The new buyer must meet the scheme’s eligibility criteria.

If the home doesn’t sell within six months, you may be able to apply to sell it on the open market, but you would have to return the discount amount to the local council.

Yes, you can use savings from a Help to Buy ISA or Lifetime ISA towards your deposit.

This can be a great way to boost your affordability, as the government provides a 25% bonus on your savings when used for a home purchase. Your mortgage lender will factor these funds into your application.

However, the Help to Buy ISA is no longer available to new applicants. It was only open to those who opened an account before the deadline in November 2019. If you already have one, you can still use it towards your First Home purchase.

You’ll need to find a home available under the scheme and apply through the developer or estate agent selling the property.

They’ll check your eligibility and submit your application to the local council. If approved, you can then arrange a mortgage and begin the process of buying your home.

Our mortgage advisors can help ensure your application is set up correctly and guide you through securing a mortgage offer.

This scheme is designed for owner-occupiers, so letting out the entire property isn’t usually allowed.

In certain situations, such as job relocation, redundancy, or personal circumstances like separation, you may be granted permission to rent it out for up to two years.

Renting out a single room is allowed as long as you continue living in the home.

Not every mortgage lender will let you rent out your property after two years of living in the property. It is always worth double-checking that this is something that you can do.

If you are planning on purchasing a property to rent out, perhaps exploring first time buyer buy to let mortgages is more suited to you.

Once you’ve purchased your property, there’s no requirement to continue meeting the income limits of the scheme.

If your financial situation improves over time, you won’t be forced to sell your home.

The only restriction is that if you decide to sell in the future, you must offer the same percentage discount to the next buyer.

When you decide to sell, the same percentage discount you received must be passed on to the next buyer.

The property will need to be valued by a surveyor, and the new buyer must meet the scheme’s eligibility criteria.

If you struggle to sell within six months, you may be able to request permission from the local council to sell at full market value, but you’d need to return the discount amount to the council.

Buying through the First Homes Scheme involves some unique steps, and not all lenders offer mortgages for these properties.

Getting mortgage advice from a broker like us can help you find the right lender, secure a mortgage that meets the scheme’s requirements and provide mortgage advice to ensure everything runs smoothly.

They can also assist with affordability checks, explain the application process, and help you get an agreement in principle quickly.