About this calculator
The Your First Home calculator estimates the deposit, repayment mortgage and government equity loan for a qualifying first-time buyer purchasing an eligible new-build property in England. It is based on the UK government's published guidance dated 28 October 2026, before applications open.
The scheme is expected to allow a buyer deposit of 2.5% to 15% of the purchase price, a government equity loan worth 20%, and a repayment mortgage for the remainder. Income and local property-price caps apply. A lender must still approve your application.
How the calculation works
Buyer deposit = property price × deposit percentage. Government equity loan = property price × 20%. Repayment mortgage = purchase price minus the deposit minus the equity loan. The mortgage calculator uses a standard capital-and-interest repayment formula at the rate and term you enter.
The government equity loan is interest-free for years one to five. Its published interest rate is 1.5% in year six and 3% from year seven. Monthly equity-loan interest is the outstanding equity loan multiplied by the annual interest rate and divided by 12. Interest payments do not pay off the equity loan.
If you repay the entire equity loan when selling, you will normally repay 20% of the independently valued property price at that time. The amount can increase or decrease with the value of the property; it is not simply the original cash amount.
| Funding source | Amount | Percentage |
|---|---|---|
| Buyer deposit | £7,500 | 2.5% |
| Government equity loan | £60,000 | 20% |
| Repayment mortgage | £232,500 | 77.5% |
| Total home price | £300,000 | 100% |
Worked examples
How much deposit for a £300,000 home?
At 2.5%, you need £7,500. The government provides a repayable £60,000 equity loan and the repayment mortgage is £232,500. You need extra cash for legal fees, property taxes where payable, surveys and moving costs.
What would the monthly repayments be?
At an illustrative 5% mortgage rate over 30 years, the mortgage repayment is roughly £1,248 per month. With an unchanged £60,000 equity loan, total mortgage plus equity-loan interest is about £1,248 per month in years 1–5, £1,323 in year 6 and £1,398 from year 7. Other housing expenses are excluded.
What if the house increases in value?
If a £300,000 home rises in value to £320,000, repaying a 20% equity loan would ordinarily cost £64,000, rather than the £60,000 originally received. A fall to £280,000 would instead imply repayment of £56,000.
How does it compare with a standard 95% mortgage?
On a £300,000 home, a conventional 5% deposit is £15,000 and a 95% mortgage is £285,000. At an identical 5% mortgage rate over 30 years, the monthly mortgage payment would be around £1,530. This is a like-for-like interest rate assumption, not a claim that lenders will offer the same deal.
What makes this new 2027 calculator different?
New for 2027, last checked against the government's 28 October 2026 guidance on 30 October 2026. Ordinary mortgage calculators only estimate a bank loan and monthly mortgage payment. This tool also splits out the 20% repayable government equity loan, models the 2.5%–15% deposit range, calculates separate interest after year five and shows what an equity-loan repayment could mean when selling.
Use the eligibility controls to compare your household income against the published limits and property value against selected published local example caps. Neither this calculator nor a general mortgage tool can confirm final scheme eligibility, participating developers, creditworthiness or a lender's actual mortgage offer.
This is an illustrative planning calculator based on the announced scheme, not a government application portal and not an official calculator. Actual eligible properties, local caps, lender availability and operational rules may change before the planned February 2027 opening.
Latest Your First Home news, review dates and what happens next
26 September 2026: Prime Minister Andy Burnham's government announced plans for Your First Home, with a proposed 2.5% deposit and 20% equity loan. The official launch announcement is linked below.
28 October 2026: the government published full initial Your First Home guidance and Budget 2026 details, confirming income caps, example local price caps, five interest-free years, 1.5% equity-loan interest in year six, 3% from year seven, and the provisional launch schedule.
Calculator checked on 30 October 2026 against those published government documents. Figures are based on that version, not automatically updated live. Important milestones to review again: official pre-registration expected by December 2026, application opening expected February 2027, first sales expected April 2027, final lender/developer lists, valuation fees and repayment terms.
Further MMG explainers may follow when the government publishes final local authority price caps, participating lenders and eligibility rules. These are planned editorial topics, not articles already available. For a current official update, use the primary GOV.UK guidance link below.
Your First Home eligibility and property price limits
The scheme is planned for first-time buyers of eligible new-build main homes in England. The published household income limit is £110,000 outside London and £140,000 within London. Participating lenders and developers must be approved under the scheme.
The government has illustrated property price caps of £375,000 in Reading, £355,000 in Manchester, £320,000 in North Devon and £220,000 in Middlesbrough, alongside £650,000 for inner London and £500,000 for outer London. The full local-authority list and complete application rules are not yet published. A calculator cannot certify eligibility.
What happens if you sell, remortgage or repay early?
The government equity loan is linked to a percentage of your home's value. Full repayment is normally due when you sell; earlier partial or full repayment is expected to be allowed. The government will publish final valuation, fee and partial repayment procedures before launch.
The sale illustration shows the property value minus the government's 20% share and your estimated remaining repayment mortgage. It excludes estate agent fees, conveyancing costs, early mortgage repayment charges and equity-loan administration or valuation fees. Negative or lower proceeds are possible if prices fall.
What other home-buying costs should I allow for?
Your First Home is not a grant and does not remove conveyancing fees, property tax where applicable, mortgage fees, insurance, council tax, maintenance, service charges, estate charges or moving costs.
The price and interest-rate assumptions are adjustable, not lender quotations or a mortgage affordability decision. Compare a larger deposit, a different interest rate and future housing costs before committing.
When do Your First Home applications open?
GOV.UK expects customer pre-registration before the end of December 2026, applications from February 2027 and first sales from April 2027. As at 30 October 2026, applications are not open. Pre-registration does not commit you to a purchase.
Do not confuse Your First Home with the different First Homes discount scheme. They have different eligibility, payment and resale rules.
What changes the result?
- Property price and your local area, which affect affordability and whether you could be within a published example price cap.
- Buyer deposit from 2.5% to 15%, which changes your required repayment mortgage but not the published 20% equity-loan share.
- Mortgage interest rate and term, which change monthly mortgage payments and remaining balance.
- Household income and participation conditions, which affect eligibility but cannot establish it without a participating lender.
- Illustrative sale price and year, which affect the equity-loan repayment and projected mortgage balance.
Common mistakes
- Treating a 20% equity loan as a discount, grant or fixed £60,000 debt. Its repayment is generally linked to 20% of the home's future value.
- Assuming the first five years are entirely payment-free. Only the government equity-loan interest is free during those years; the mortgage still has repayments.
- Reading a local-authority example price cap as a guaranteed cap for your own address. The full list is still to be published.
- Ignoring the equity-loan interest that begins in year six, future mortgage rate changes or fees on sale.
- Confusing Your First Home with the existing First Homes discount, shared ownership, or a standard 95% mortgage.
Frequently asked questions
What makes this different from a normal mortgage calculator?
A normal repayment calculator usually models the bank mortgage only. This Your First Home calculator also shows the minimum 2.5% deposit, separate 20% equity loan, the government loan's post-year-five interest and the equity-loan repayment at an illustrative future property value.
What makes Your First Home different from a standard 95% mortgage?
A conventional 95% repayment mortgage normally needs a 5% deposit and does not provide an equity loan. Your First Home allows a deposit from 2.5% to 15%, plus a 20% government equity loan which will need repaying. Compare both total obligations rather than just the first monthly payment.
Is Your First Home the same as the 2025 Mortgage Guarantee Scheme?
No. The permanent Mortgage Guarantee Scheme backs participating mortgage lenders making 91%–95% LTV loans, not first-time buyers with an equity-loan payment. Your First Home is a distinct proposed equity-loan scheme in England for qualifying first-time buyers buying eligible new builds.
Is Your First Home better than shared ownership?
It works differently: under Your First Home you own the entire property and owe a 20% equity loan, whereas in shared ownership you buy a portion of a home and pay rent on the portion a landlord retains. The better option depends on borrowing, rent, future equity repayment, property availability and other charges.
Is this the old First Homes or Help to Buy scheme?
No. The First Homes scheme discounts eligible properties by 30%–50% under its own rules. Your First Home is a new 2027 equity-loan scheme. The old Help to Buy equity-loan programme is not the same programme, and its historic fees and terms must not be used to estimate this one.
Is the maximum Your First Home deposit 15%?
Budget 2026 states the buyer deposit must be at least 2.5% and no more than 15% of the purchase price. The government equity loan is a separate 20% of the purchase price. Adjust the deposit control to see how the repayment mortgage changes.
Can a couple or joint applicants use Your First Home?
The published scheme targets first-time buyers and uses combined annual household income caps. The government has not yet published all detailed joint-application rules. Do not assume qualification if one applicant previously owned a home; confirm the final eligibility terms.
Can I use Your First Home if I owned property before?
It is intended for first-time buyers. Full rules on prior ownership, inheritance, overseas property ownership and exceptional circumstances have not yet been published. If you have ever owned a residential property, do not assume you qualify.
Can I use the scheme if my family gifts me the deposit?
Gifted-deposit rules have not yet been fully published for the new scheme. Participating lenders will also apply their own checks on the source of deposit funds and affordability. Confirm both before relying on a family contribution.
Can I buy a flat, leasehold home or a property outside London?
The planned scheme covers eligible new-build properties in England, subject to local caps and developer participation. The government has not yet provided a complete list of eligible homes, including all tenure or property-type restrictions.
Can I use Your First Home for a second home, buy-to-let or holiday home?
No. The scheme is aimed at qualifying first-time buyers who will use the property as their main residence. It should not be treated as an investment-property or second-home mortgage scheme.
Does the government own 20% of my house?
You own the property from completion. The government is not your landlord or a joint owner. However, its equity loan is linked to 20% of your home's value, so the amount owed can rise or fall before repayment.
Will my payments rise after five years?
The equity loan is interest-free for years one to five. Published equity-loan interest is 1.5% in year six and 3% from year seven on the outstanding balance. Mortgage payments may also change when the mortgage rate changes, and equity-loan interest does not reduce the principal.
What if I sell the house, pay off the equity loan early or remortgage?
The equity loan is normally repaid on sale, based on its percentage of the independently valued home. Partial or full early repayment is expected, but detailed minimum repayments, valuations, fees and remortgaging instructions will be published before launch.
Can I use a Lifetime ISA or First Time Buyer ISA alongside Your First Home?
Lifetime ISA contributions and bonus eligibility follow separate rules. The new First Time Buyer ISA is not due until April 2029. The government has not yet confirmed all rules about combining savings products with this equity-loan scheme; check the product and scheme terms.
Do I qualify if I earn £65,000, £110,000 or £140,000?
The published household income cap is £110,000 outside London or £140,000 in London. A £65,000 household is below either cap, a £110,000 household is at the non-London cap, and a £140,000 household is at the London cap. Eligibility also requires all other scheme and lender checks.
Which postcodes or local authorities are eligible?
Your First Home is planned for England and local new-build price caps will apply. Reading (£375,000), Manchester (£355,000), North Devon (£320,000), Middlesbrough (£220,000), inner London (£650,000) and outer London (£500,000) are published examples. The complete local-authority price-cap list has not yet been released.
Are applications or pre-registration currently open?
Not as of 30 October 2026. Official pre-registration is expected by December 2026, applications from February 2027 and first sales from April 2027. The scheme's operational documents and participating developers will be confirmed nearer launch.
When was this calculator updated and how often is it checked?
This tool was first prepared and checked on 30 October 2026 against the government's 28 October 2026 guidance and Budget. It is not a live government feed. A weekly official-source change check is scheduled from November 2026, with site updates subject to factual verification and testing. Key triggers include pre-registration, full local price caps and lender terms.
What is the Your First Home scheme?
A planned England-only government equity-loan scheme for eligible first-time buyers purchasing participating new-build homes. Buyers supply 2.5% to 15% deposit, a lender supplies the repayment mortgage and government supplies a repayable 20% equity loan.
How much deposit do I need for Your First Home?
The published minimum is 2.5% of the purchase price, with a 15% maximum. On a £300,000 property, 2.5% is £7,500; add funds for legal and other buying costs.
How does the 20% government equity loan work?
The government contributes 20% of the price at purchase. When repaying the whole equity loan, you normally repay 20% of the property's independently valued market value at that time.
Is the government equity loan interest-free for the first 5 years?
Only the government equity loan is interest-free for the first five years. You still pay your repayment mortgage. Equity-loan interest is 1.5% in year six and 3% from year seven under the published terms.
How much does Your First Home cost per month?
For the government's illustrative £300,000 home with a 2.5% deposit, 5% mortgage interest and 30-year term, the mortgage is roughly £1,248 a month, with an additional £75 equity-loan interest in year six and £150 from year seven.
Can I qualify with a £110,000 or £140,000 household income?
Published household income caps are £110,000 outside London and £140,000 within London. Being within the cap is necessary but not sufficient: you still need to meet all scheme and lender checks.
Can I use the scheme on an existing home?
No. It is intended for eligible new-build homes in England from participating developers, subject to local price caps.
Can I use Your First Home in Scotland, Wales or Northern Ireland?
No. The announced equity-loan scheme applies to England only.
Can I sell the home before paying off the government loan?
The loan is normally repaid on sale, using an independently valued percentage of the property value. Complete valuation and partial-repayment procedures are due before applications open.
When can I apply for Your First Home?
Government guidance expects pre-registration by December 2026, applications from February 2027 and first sales from April 2027. The scheme was not open to applicants on 30 October 2026.
Is Your First Home the same as the First Homes scheme?
No. Your First Home is a repayable government equity loan, while First Homes is an existing discount scheme with separate conditions.
Sources and methodology
- GOV.UK: Your First Home — full scheme guidance, 28 October 2026
- HM Treasury: Budget 2026 (deposit and income caps, timetable)
- GOV.UK: 26 September 2026 announcement of Your First Home
- GOV.UK: Permanent 2025 Mortgage Guarantee Scheme (different scheme)
- GOV.UK: Shared ownership scheme explained
- GOV.UK: Existing First Homes scheme (different programme)
- MoneyHelper: Mortgage repayment calculator guide
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