Your first home could be closer than you think
Buying your first home is an exciting milestone, but saving for a deposit can feel like the biggest hurdle.
Now, a new Government scheme could make getting onto the property ladder easier.
Announced in the Autumn Budget, Your First Home will help eligible first-time buyers purchase a new-build home with a deposit of just 2.5%, supported by a Government equity loan.
With applications expected to open in February 2027, here’s what you need to know.
How does Your First Home work?
The scheme will allow eligible first-time buyers in England to purchase a new-build home with:
- A deposit of just 2.5%.
- A Government equity loan covering 20% of the purchase price.
- A mortgage covering the remaining balance.
The equity loan will be interest-free for the first five years, helping to reduce monthly costs.
How much could you save?
On a home costing £300,000, here’s how the figures could compare.
With a standard 95% mortgage
- Deposit: £15,000
- Mortgage: £285,000
With Your First Home
- Deposit: £7,500
- Government equity loan: £60,000
- Mortgage: £232,500
That’s £7,500 less to save for your deposit, plus a smaller mortgage.
Based on the Government’s illustrative figures, monthly mortgage payments could also be around £282 lower during the first five years, assuming a 30-year mortgage at 5% interest.
Actual costs will depend on individual circumstances, and the equity loan must be repaid.
Who can apply?
To qualify, you’ll generally need to:
- Be a first-time buyer purchasing your main home.
- Have a household income of £110,000 or less outside London.
- Buy an eligible new-build home from a participating developer.
- Secure a mortgage from a participating lender.
- Purchase within the local property price cap.
For example, the property price cap in North Devon is £320,000.
What happens after five years?
The Government equity loan is interest-free for the first five years.
Interest will then apply at:
- Year six: 1.5%
- Year seven onwards: 3%
The loan is linked to your property’s value, meaning the amount you repay could increase or decrease as its value changes.
You can repay the loan when you sell your home or make repayments earlier, subject to the scheme’s terms.
When does the scheme launch?
The Government has outlined the following timetable:
- December 2026: Customer pre-registration opens.
- February 2027: Applications open.
- April 2027: First property sales expected.
Could Your First Home help you buy a Cavanna home?
At Cavanna Homes, we’ve been helping people find their place to call home across the South West for generations.
We’re following the launch of Your First Home closely and exploring what the scheme could mean for buyers interested in our developments.
Whether you’re just starting your search or have already found a home you love, our friendly sales teams are here to help you explore your options.
Be the first to hear more
Thinking about buying your first home?
Register your interest today and we’ll keep you updated on the latest scheme information, eligibility requirements and opportunities to purchase a Cavanna home.
Your First Home is a Government scheme expected to launch in 2027. Cavanna Homes’ participation has not yet been confirmed. All financial examples are illustrative and subject to eligibility, mortgage affordability and final scheme terms. The Government equity loan must be repaid.
Information correct as of 28 October 2026
The Cavanna Group
Cavanna House
Riviera Park
Nicholson Road
Torquay TQ2 7TD
01803 618688
Customer Services Dedicated Line: 01803 618780
Cavanna House
Riviera Park
Nicholson Road
Torquay TQ2 7TD
01803 618688
Customer Services Dedicated Line: 01803 618780
