Facts at a Glance
Your First Home – Eligibility
- The scheme is announced for first-time buyers in England buying a new-build home from a participating developer.
- A household income cap will apply, but the exact figure has not yet been published.
- Local property price caps will apply and will vary by area, but figures have not yet been published.
- No developers or lenders have been confirmed as participating yet.
- Full eligibility rules are expected at the Autumn Budget on 28 October 2026.
- For the 2.5% deposit itself, see our dedicated guide: How Does the 2.5% Deposit Work?
- Everest Mortgages is an independent, whole-of-market mortgage broker.
Introduction
One of the biggest questions surrounding the proposed Your First Home scheme is who will actually be eligible to use it.
The scheme has been announced as a government-backed option for first-time buyers in England, with eligibility expected to include buying a qualifying new-build property, meeting a household income cap and staying within a local property price limit.
However, the full eligibility framework has not yet been published. That means it is possible to understand the broad groups the scheme is intended to support, but not yet confirm every condition a buyer will eventually need to meet.
For a wider overview of the scheme, including the proposed 2.5% deposit and government equity loan, see our Your First Home Scheme guide.
Important: Eligibility Details Are Not Yet Fully Confirmed
Your First Home has been announced, but the scheme is not yet fully operational. The announced eligibility framework is expected to include first-time buyer status, purchasing an eligible new-build property in England, a household income cap and local property price caps. However, the exact income and property price limits, participating lenders and developers, and the full operational rules are still subject to confirmation, with further details expected at the Autumn Budget on 28 October 2026.
This means the information below explains the announced eligibility framework, rather than a final set of confirmed application rules.
Who Is Your First Home Intended For?
The proposed Your First Home scheme is intended to help first-time buyers in England purchase eligible new-build homes.
The key elements announced so far are:
- You must be a first-time buyer.
- The property must be in England.
- The property must be an eligible new-build home.
- The property will need to be within the applicable local property price limit.
- The household will need to meet the applicable income cap.
- The purchase is expected to involve a participating developer and lender.
These requirements are intended to define who can access the scheme, but the detailed rules behind each condition have not yet been fully published.
As above, the final eligibility criteria and participating lenders and developers are still subject to confirmation.
Do You Have to Be a First-Time Buyer?
Yes. The announced scheme is intended specifically for first-time buyers.
This is an important distinction because Your First Home is not being presented as a general government-backed mortgage option for anyone looking to move home. Its purpose is to help people buy their first home. However, the detailed definition and application rules for determining first-time buyer status under the scheme have not yet been published.
If you have previously owned a property, inherited a property or have another situation that could affect your first-time buyer status, it would therefore be sensible to check the final rules before assuming that you qualify.
The wider scheme is still subject to confirmation, so buyers should avoid treating the current announcement as a final eligibility checklist.
Does Your Income Affect Eligibility?
Yes. A household income cap is part of the announced eligibility framework.
However, the exact income limit has not yet been published. It is important to distinguish this scheme income cap from the affordability assessment carried out by a mortgage lender. The income cap is intended to determine whether a household falls within the eligibility criteria for the scheme. It does not tell you how much a lender will be prepared to lend.
For example, a household could fall below the eventual scheme income cap but still have a different mortgage borrowing limit based on its individual financial circumstances.
The final income threshold and how household income will be assessed are still to be confirmed.
Are There Property Price Limits?
Yes. Local property price caps are part of the announced framework.
This means the maximum property value permitted under the scheme is expected to vary depending on the area where you are buying. For a first-time buyer, this could make the location and price of a property particularly important when considering whether the scheme could apply.
For example, finding a qualifying new-build property is not necessarily enough on its own. The property’s price would also need to fall within the applicable local limit. The actual property price caps have not yet been published, so buyers cannot currently use a specific figure to determine whether an individual property will qualify.
As above, the final limits are still subject to confirmation.
Does the Property Have to Be a New Build?
Yes. The announced Your First Home framework is focused on eligible new-build properties. This is an important part of the scheme because it means buyers will not necessarily be able to use it to purchase any property available on the wider housing market. The scheme is also expected to involve participating developers, but no final list of participating developers has been confirmed at this stage.
If you are considering a new-build property, you can also explore our New Build Mortgages guide.
It is worth remembering that being a new-build property does not automatically make a home eligible. The property will still need to meet the final scheme requirements, including any applicable price limits and other conditions.
Does Having a 2.5% Deposit Automatically Make You Eligible?
No.
Having a 2.5% deposit is one of the proposed headline features of Your First Home, but the size of your deposit is only one part of the overall picture. You could have enough savings for a 2.5% deposit and still need to meet the scheme’s other eligibility requirements, as well as the mortgage lender’s criteria.
For example, a £300,000 property would require £7,500 for a 2.5% deposit. However, having that £7,500 available would not automatically mean the buyer qualifies for the scheme or that a lender would approve the required mortgage.
For a detailed explanation of how the proposed 2.5% deposit could work, see our How Does the 2.5% Deposit Work? guide.
What Other Factors Could Affect Your Mortgage Eligibility?
Meeting the proposed Your First Home eligibility requirements is only one part of the process. You would also need to meet the mortgage lender’s own affordability and eligibility criteria.
A lender may consider factors such as:
- Your income
- Your existing financial commitments
- Your regular expenditure
- Your credit history
- The amount you are looking to borrow
- The property you want to buy
- The lender’s affordability criteria
This is different from the scheme’s household income cap discussed above. The scheme income cap is an eligibility condition for accessing the scheme, while the lender’s affordability assessment is about whether the mortgage itself is affordable and suitable based on your individual financial circumstances.
Understanding your potential borrowing position can therefore be useful even before the final scheme details are confirmed.
You can use our Mortgage Calculator to start exploring your potential figures.
Case Study: A First-Time Buyer Checking Their Eligibility
The challenge
A first-time buyer was considering a new-build property and wanted to understand whether the proposed Your First Home scheme could potentially be suitable for them.
They were particularly unsure whether their household income, the property’s price and their first-time buyer status would meet the scheme’s eventual requirements.
Our approach
We looked at the buyer’s wider financial position rather than focusing on one eligibility factor in isolation.
This included considering their income and financial commitments, the property they were considering and the amount they could potentially borrow. We also looked at the announced Your First Home framework, including the first-time buyer requirement, new-build focus, proposed income cap and local property price limits.
Because the final scheme rules had not yet been confirmed, we treated the announced criteria as a framework rather than assuming that the buyer was definitely eligible.
The outcome
The buyer gained a clearer understanding of the factors that could affect their eligibility and mortgage position.
Rather than assuming that being a first-time buyer automatically meant they could use the scheme, they understood that their income, property choice and mortgage affordability would also need to be considered once the final rules are published.
Broker Insight: What First-Time Buyers Often Get Wrong About Eligibility
One common misunderstanding is assuming that being a first-time buyer automatically means you qualify for a government-backed scheme.
In reality, there can be several different parts to eligibility. With Your First Home, the buyer’s first-time buyer status is important, but so are the proposed household income cap, property price limits and new-build requirement. Then there is the separate question of whether the buyer can actually obtain the mortgage they need. Even if someone meets the scheme’s eligibility requirements, the lender will still need to assess their affordability and individual circumstances.
The key is to look at the whole picture rather than focusing on one headline feature of the scheme.
What Should I Check Before Looking for a Property?
If you’re considering Your First Home, there are several things you can start checking before you begin seriously looking at properties.
1. Check your first-time buyer position
Make sure you understand whether you are likely to meet the scheme’s first-time buyer requirement. The detailed definition is still subject to confirmation, so avoid making assumptions if your circumstances are unusual.
2. Understand your household income
The scheme is expected to include a household income cap. Although the final figure has not yet been published, understanding your household income position can help you assess whether the scheme may potentially be relevant to you.
3. Work out your available deposit
Consider how much you have saved and what property prices that could potentially support. The proposed 2.5% deposit could reduce the amount needed upfront, but it does not remove the other scheme and mortgage requirements.
4. Consider whether a new-build would suit you
Your First Home is focused on eligible new-build properties. Think about whether buying a new-build fits your plans, budget and preferred location.
5. Consider property prices in your area
Local property price caps are expected to apply, so the price of the property you are considering will be important. The final limits have not yet been published.
6. Understand your potential borrowing
Your deposit and scheme eligibility do not tell you how much a lender may be willing to lend. Using a Mortgage Calculator can help you start exploring your potential figures, while our First-Time Buyer Mortgages guide can help you understand the wider mortgage process.
Your First Home Scheme Eligibility FAQs
If you’re trying to work out whether Your First Home could apply to you, these are some of the common eligibility questions first-time buyers may have.
Who can apply for the Your First Home scheme?
The announced scheme is intended for first-time buyers in England purchasing eligible new-build properties. A household income cap and local property price limits are also expected to apply.
The final eligibility rules have not yet been fully confirmed. For a full overview of the scheme, see our Your First Home Scheme guide.
Do I have to be a first-time buyer?
Yes. The scheme is intended for first-time buyers.
However, the detailed definition and rules for determining first-time buyer status under the scheme have not yet been published.
Is there an income limit for Your First Home?
Yes. A household income cap is part of the announced eligibility framework.
The exact income limit has not yet been published, so it is not currently possible to confirm eligibility based on a specific income figure.
Is there a property price limit?
Yes. Local property price caps are expected to apply and will vary by area. The actual figures have not yet been published.
Does the property have to be a new build?
Yes. The announced scheme is focused on eligible new-build properties from participating developers. The final requirements and participating developers are still to be confirmed.
Can I use Your First Home if I already own a home?
The scheme is intended for first-time buyers, so previous home ownership may affect eligibility.
However, the detailed rules for determining first-time buyer status have not yet been published. If you have previously owned a property or your circumstances are unusual, the final scheme rules will need to be checked.
Can I apply for Your First Home now?
Not yet. Your First Home has been announced but is not yet fully operational. The final eligibility rules, participating lenders and developers, and implementation arrangements still need to be confirmed. Further details are expected at the Autumn Budget on 28 October 2026.
Ready to Understand Your Mortgage Position?
You don’t have to wait for every detail of Your First Home to be confirmed before understanding your own mortgage position.
If you’re a first-time buyer considering a smaller deposit or a new-build property, we can help you look at your potential borrowing, affordability and wider mortgage options so you have a clearer idea of what may be possible.
Book a Free Mortgage Consultation
Disclaimer
Your First Home is a Government policy that has been announced but has not yet been confirmed in full. The information in this article is based on the details announced so far and may change as further information is published. The eligibility framework, including the first-time buyer requirement, household income cap, property price limits, new-build requirements, participating lenders and developers, costs and implementation arrangements, remain subject to the final scheme rules.
Mortgage availability, affordability and eligibility depend on individual circumstances and lender criteria. Your home may be repossessed if you do not keep up repayments on your mortgage.
