Category First Time Buyers

A young couple buying their new flat standing outside the new development on a nice day with a banner saying 'Your First Home' scheme.
UK Government ‘Your First Home’ Scheme Explained: 2.5% Deposits and Equity Loans

Summary

The UK government’s newly announced ‘Your First Home’ scheme introduces a 2.5% deposit requirement alongside a 20% government-backed equity loan for first-time buyers in England purchasing eligible new-build properties.Here is how the mechanics of this flagship initiative work, how it compares to past schemes, and how to navigate the upcoming eligibility rules.

Crossing the Deposit Gulf

For prospective first-time buyers, saving for a home deposit often feels like walking a treadmill set to an incline that continuously steepens. While monthly mortgage affordability might stack up on paper, pulling together a standard 10% or 15% cash deposit—often tens of thousands of pounds—remains the primary barrier to home ownership.

The government’s ‘Your First Home’ scheme aims to bridge this deposit gap.Designed to lower upfront entry barriers while stimulating new-build development in England, the scheme allows eligible buyers to secure a home with as little as a 2.5% personal deposit.

The Obstacle: High Deposits and Capital Requirements

In recent years, navigating the property ladder without significant family support “the Bank of Mum and Dad” has forced many buyers into long-term renting.

  • The Deposit Barrier: On an average first-time buyer property priced at £250,000, a traditional 10% deposit requires £25,000 in liquid cash upfront.
  • Mortgage Affordability Stretch: High loan-to-value (LTV) mortgages (such as 95% LTV products) often carry higher interest rates, requiring stricter income stress tests from mainstream lenders.
  • New-Build Restrictions: Lenders can require higher deposits specifically for new-build houses and flats due to initial depreciation risks.

How the ‘Your First Home’ Scheme Works

The ‘Your First Home’ scheme operates as a structured equity loan model, distributing the capital requirement across three distinct funding tiers:

[ Buyer Deposit: 2.5% ] + [ Government Equity Loan: 20% ] + [ Mainstream Mortgage: 77.5% ]
                                                                     = 100% Property Value

Key Mechanics of the Structure:

  1. Buyer Contribution (2.5%): The purchaser provides a minimum 2.5% deposit.
  2. Government Equity Loan (20%): The state provides a 20% equity loan.This loan is interest-free for an initial period (exact duration and post-period interest structures to be finalised in upcoming Treasury updates).
  3. First Mortgage (77.5%): Rather than borrowing 95% or 97.5% from a commercial lender, the buyer only needs a 77.5% Loan-to-Value (LTV) mortgage.

Illustrative Breakdown (£250,000 Purchase):

Funding SourcePercentageCapital Amount
Buyer Deposit2.5%£6,250
Government Equity Loan20.0%£50,000
Mainstream Mortgage77.5%£193,750
Total Purchase Price100%£250,000

By lowering the commercial borrowing requirement from 97.5% down to 77.5% LTV, buyers access mortgage products with lower interest rates and less stringent monthly stress testing compared to standard low-deposit products.

Key Takeaways

For prospective buyers, ‘Your First Home’ substantially cuts the time needed to save an upfront deposit. On a £250,000 property, the required cash deposit drops from £12,500 (at 5%) or £25,000 (at 10%) down to £6,250.

Key Takeaways for prospective buyers:

  • Targeted Focus: The scheme applies strictly to first-time buyers in England only purchasing new-build properties from participating registered developers.
  • Income & Regional Caps: Regional property price caps and household income ceilings will apply to ensure support targets lower-to-middle income households.
  • Equity Loan Nature: Because the 20% contribution is an equity loan, the amount repaid in the future fluctuates based on the property’s market value at the time of redemption or sale, rather than a fixed cash figure.

Frequently Asked Questions (FAQ)

Q: Who is eligible for the ‘Your First Home’ scheme?

A: The scheme is designed for first-time buyers purchasing a primary residence in England.Applicants must meet household income caps and purchase a new-build property under regional price limits from a participating housebuilder.

Q: Is the 20% equity loan completely interest-free forever?

A: No.The equity loan features an initial interest-free period.Once this period ends, fee structures apply on the outstanding loan amount until it is repaid or the property is sold.

Q: How does this differ from the old Help to Buy scheme?

A: While structured similarly around a 20% equity loan, ‘Your First Home’ significantly reduces the required buyer deposit from 5% down to 2.5% and incorporates updated income caps and developer contributions.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

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FCA Risk Warning:

YOUR HOME OR OTHER PROPERTY CAN BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.

Young couple stood outside a nice cottage. They are both happy and the weather is nice. It is a stone cottage with wisteria growing on the outside walls.
How to Get a Mortgage with Variable Income and Sales Bonuses: A Case Study

Summary

When expectant parents Adam and Sarah faced tight deadlines and complex, variable incomes, traditional high-street lenders struggled to see the full picture. First Select leveraged specialist underwriting to package Adam’s monthly sales bonuses alongside Sarah’s flexible school hours, securing their ideal family home ahead of their baby’s arrival.

For first-time buyers, purchasing a home is a major milestone—add an impending birth to the timeline, and the clock starts ticking twice as fast.

When Adam and Sarah discovered they were expecting their first child, their priority immediately shifted to securing a permanent family home. They found the ideal property, but they faced a strict deadline: completion needed to happen well before Sarah’s due date. Moving house is like managing a flight schedule—timing is everything, and unexpected delays can throw the entire plan off course.

       [ Client Profile & Key Deal Figures ]
--------------------------------------------------
* Clients:           Adam & Sarah (First-Time Buyers)
* Timeline Demand:   Fast completion needed (Pregnancy)
* Primary Income:    Sales Base + Monthly Variable Bonus
* Secondary Income:  Part-Time Variable Hours (Education)
* Challenge:         High-Street Income Shading
* Solution:          100% Bonus Retention Specialist Lender

The Obstacle

When Adam and Sarah initially approached high-street banks, they encountered immediate friction regarding their income structure.

  • Adam’s Bonus Reliance: Adam worked in high-performing sales. While his track record was consistent, a significant portion of his total earnings came from monthly performance bonuses. Standard high-street algorithms typically “shade” or cap variable bonus income, taking into account as little as 50%—or ignoring recent upward trends entirely.
  • Sarah’s Variable Hours: Sarah worked part-time at a local school. Her monthly take-home pay varied depending on term times and additional support hours worked each month. Lenders often struggle with non-standard hourly patterns, defaulting to the lowest monthly average rather than actual earning potential.

To an automated lending algorithm, Adam and Sarah appeared as high-risk, lower-affordability applicants. In reality, their combined household income was robust, reliable, and more than sufficient to cover the mortgage repayments.

The Engineering

Navigating complex lending parameters requires looking beyond rigid automated scoring systems. Think of a mortgage broker as an air traffic controller directing a flight through adverse weather: when the direct path is blocked, you plot a precise, specialist route to reach the destination safely.

First Select stepped in to restructure the presentation of their financials:

  1. Holistic Income Packaging: Instead of relying on standard automated uploads, we compiled a granular breakdown of Adam’s sales commission over a 12-to-24-month horizon. We demonstrated that his “variable” bonus was, in effect, a regular, dependable baseline.
  2. Specialist Lender Selection: We bypassed lenders with rigid algorithmic caps and placed the application with a specialist lender whose underwriting criteria allowed for 100% inclusion of regular sales bonuses.
  3. Optimising Part-Time Hours: We contextualised Sarah’s employment by presenting a weighted average of her academic year earnings rather than treating low-hour months in isolation.
MetricHigh-Street StandardFirst Select Approach
Bonus TreatmentCapped at 50% or averaged down100% inclusion based on track record
Part-Time HoursBased on lowest individual monthWeighted annual average
UnderwritingAutomated computer decisionManual specialist assessment

The Outcome & Takeaway

By matching Adam and Sarah with a lender who evaluates real-world earning capacity rather than relying on automated assumptions, we achieved full mortgage approval on optimal terms, giving the couple the financial clarity and confidence they needed.

  • Approval: Full mortgage offer issued in time to complete comfortably before the birth of their baby.
  • Affordability: 100% of bonus income accepted, securing the exact loan amount required without requiring a larger deposit.

Key Takeaway: Variable income does not equate to un affordability. If your earnings include bonuses, commission, or flexible hours, the key to success lies in choosing a lender whose underwriting reflects how modern professionals are actually paid.

Disclosure & Privacy

The above case study is a genuine client of First Select Mortgage Brokers. Exact details of the clients situation have been modified or changed very slightly to protect the clients privacy.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

Instagram

FCA Risk Warning:

YOUR HOME OR OTHER PROPERTY CAN BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.

Young couple holding their house keys in front of a BISF house. They are both happy and proud to be stood outside their new home.
How We Secured a High-Street Mortgage for a BISF Metal-Framed Property for First Time Buyers

Summary:

Securing a mortgage on a British Iron and Steel Federation (BISF) steel-framed property often pushes buyers toward expensive specialist lenders due to standard high-street rejections. First Select Mortgage Brokers navigated complex lender underwriting parameters to secure a high-street mortgage at a competitive low rate with a minimal deposit for two first-time buyers.

The Goal: A First Step on the Property Ladder

For first-time buyers early in their careers, stepping onto the property ladder is already a major milestone. Our clients found an affordable home that suited their budget perfectly, allowing them to make the leap from renting to homeownership without overstretching their modest salaries.

However, the transaction carried high stakes. With limited savings, they needed a low-deposit mortgage at a competitive high-street interest rate to ensure their monthly outgoings remained manageable.

The Obstacle: The “Impassable Road” of BISF Construction

The property was a British Iron and Steel Federation (BISF) home—a popular form of post-war prefabricated steel-framed construction. Think of property underwriting like a conveyor belt: high-street lenders prefer standard brick-and-mortar homes because they are straightforward to value and resell. When a non-standard construction type like a metal frame comes down the belt, automatic systems often flag it and halt the process.

Most mainstream banks decline BISF properties outright or demand extensive, costly structural surveys alongside higher deposit requirements. Facing these rejections, the buyers feared their only route forward was a specialist lender.

Standard High-Street Path:   [ BISF Metal Frame ] ──> [ Automatic Underwriting Decline ]
Specialist Lender Path:      [ Higher Deposit Required ] + [ Elevated Interest Rates ]

Whilst specialist lenders can often provide excellent solutions to lending challenges, relying on a specialist lender in this situation would mean:

  • Higher Interest Rates: Significantly increasing monthly payments.
  • Larger Deposit Requirements: Forcing the buyers to delay the purchase to save more capital.
  • Added Financial Stress: Straining a modest budget at the very start of their financial journey.

The Engineering: Securing Mainstream Approval

Rather than accepting a high-cost specialist product, First Select restructured the application strategy from the ground up. Non-standard construction approval is not about changing the property; it is about selecting the exact lender whose criteria matrix accepts the specific structural framework.

First Select executed a three-step placement strategy:

  • Granular Criteria Matching: We filtered the entire mortgage market to isolate the select group of high-street banks whose underwriting guidelines explicitly accept BISF properties without imposing penalizing terms.
  • Pre-Application Surveyor Engagement: We engaged directly with panel surveyors prior to submission to ensure the property met the specific structural conditions required by the chosen bank.
  • Income & LTV Optimization: We packaged the clients’ modest income streams alongside a low-deposit structure (90% LTV), presenting a pristine credit profile to offset the non-standard nature of the building.

By carefully matching the physical properties of the building to the precise risk appetite of a mainstream lender, we bypassed the need for expensive secondary market financing.

The Outcome & Key Takeaway

First Select successfully secured a full mortgage offer with a tier-one high-street bank, delivering a outcome that kept the clients’ homeownership dream intact and affordable.

  • Deposit: 10% (90% LTV)
  • Interest Rate: Market-leading high-street fixed rate
  • Turnaround Time: Full offer issued in 12 working days

Key Takeaway for Buyers: A property decline from a high-street bank is rarely a final “no”—it is often simply a sign that your property type does not fit that specific bank’s automated algorithms. Specialist guidance can help you find mainstream rates on non-standard homes.

Disclosure & Privacy

The above case study is a genuine client of First Select Mortgage Brokers. Exact details of the clients situation have been modified or changed very slightly to protect the clients privacy.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

Instagram

FCA Risk Warning:

YOUR HOME OR OTHER PROPERTY CAN BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.

Young couple unrolling a rug in their new home
Shared Ownership Mortgages

Shared Ownership Mortgages

Shared Ownership Mortgages: Shared Ownership homes are a fantastic way for First Time Buyers to get onto the housing ladder. Shared Ownership is an affordable home purchase scheme often run by Housing Associations to allow first time buyers to purchase a ‘share’ of the property, rather than the entire property.

The ‘share’ you do not purchase is still owned by the housing association. However, buyers have full use of the entire home despite only buying a ‘share’. Shared Ownership buyers still benefit the same as standard home buyers from any growth in the house prices and they can live in the home forever, or sell after a few years and trade up.

Not all Banks and Building Societies support Shared Ownership mortgages. Thankfully we have accessed to the widest selection of lenders to find the right deal for your circumstances.

Do I qualify for Shared Ownership?

To qualify for a shared ownership home you must:

  • Income must be less than £80,000. (£90,000 in London).
  • Must be a first time buyer, OR
  • Previously owned a home but cannot afford to buy one now, or
  • You are forming a new household (for example after a divorce), or
  • You are an existing shared ownership owner, and want to move home

How do I search for Shared Ownership homes?

On RightMove you can search for Shared Ownership homes. Simply enter the location and then click ‘filters’. On the left hand side under ‘Must Haves’ select ‘Buying Schemes’. This will then only show Shared Ownership homes in the search results. Some other homes will also show, for example homes are for over aged 55’s so double check the search results.

More information on discounted purchase schemes can be found here at Share to Buy

Our Services

Our team of friendly experts will explain the process of applying for a mortgage and guide you along the journey. We can explain the entire process and provide FCA regulated advice and recommendation on the best financial solutions for your circumstances, based on your preferences.

  • A dedicated Mortgage Adviser
  • Direct access via phone, email and messenger at every stage
  • Secure client portal to upload documents and share information
  • Mortgage Decision in Principle / Agreement in Principle (DIP / AIP) certificate
  • Whole of market mortgage advice and recommendation
  • Insurance & Protection to shelter you from unexpected events
  • Clear communication and regular updates
Picture of First Select Mortgage Brokers Shared Ownership Mortgages Guide for First Time Buyers. Discounted Home Purchase Scheme.

Read our Free Information guide for Shared Ownership Mortgages.

We have published a Free Information Guide for First Time Buyers. It is a short 5 minute read and can be accessed: here

Contact Us

Complete our short form to arrange a FREE no obligation call with one of our mortgage experts.

About us

First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 or 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

Instagram

References & Disclosure:

GOV UK link to Shared Ownership guidelines

https://www.gov.uk/shared-ownership-scheme/who-can-apply

Do you qualify for Shared Ownership? GOV link to eligbility link:

https://www.shared-ownership-scheme.service.gov.uk/check-eligibility-to-buy-a-shared-ownership-home

Where can you find Shared Ownership Homes? GOV link below:

https://www.gov.uk/shared-ownership-scheme/finding-shared-ownership-home
Guide: First Time Buyer Mortgages Download Page

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About us

First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

First Time Buyers in their new home taking a self picture. Mum, dad and a little girl in the kitchen surrounded by boxes unpacking from their first move.
First Time Buyer Mortgages

First Time Buyer Mortgages

First Time Buyer Mortgages: Being a First Time Buyer and needing a mortgage and be a confusing and daunting task. There is a lot to learn, lots of new jargon and a bewildering array of mortgages and insurance to consider. But do not worry, First Select Mortgage Brokers will support you from initial enquiry to getting the keys to your first home.

Our experts have access to the widest selection of lenders, to find the best deal for you and your circumstances. We also hold your hand every step of the way explaining the entire process from applying for a mortgage and all the parties involved including Estate Agents, Solicitors and Surveyors..

How we can help

As an independent and whole of market mortgage broker, we will carry out a comprehensive search of the mortgage market to find you the lowest cost mortgage that meets your circumstances. We offer a free no obligation initial conversation with one of our mortgage advisers. Our advisers can answer the most common questions we get from First Time Buyers:

  • How much could I borrow with a mortgage?
  • What is the maximum house price I could purchase?
  • How much will the monthly mortgage payments be on a first time buyer mortgage?

Specialist First Time Buyer Mortgage Products

Many of the largest banks offer special mortgage products for first time buyers. We have access to them all and can recommend the most suitable for your situation. These include:

  • Barclays Springboard Mortgage
  • NatWest Family-Backed Mortgage
  • Lloyds Lend a Hand
  • Santander My First Mortgage
  • Nationwide Helping Hand
  • Halifax £5,000 deposit mortgage
  • Family Building Society Family Mortgage

We also have access to the newly announced UK Government “Your First Home” which is available to first time buyers, seeking to buy a newly built first home.

We can access all of the above schemes and many more. Some offer zero deposit mortgages with support from family or higher income multiples to boost affordability. Some lenders also offer zero deposit mortgages if borrowers have a perfect record of paying rent. We can help you navigate all these schemes to find the one that suits your situation.

Why choose First Select Mortgage Brokers

Our team of friendly experts will explain the process of applying for a mortgage and buying your first home. We will explain the entire process and provide FCA regulated advice and recommendation on the best financial solutions for your circumstances, based on your preferences.

  • A dedicated Mortgage Adviser from start to finish
  • Mortgage Decision in Principle (DIP) certificate
  • We search the widest selection of mortgage lenders to get you the best deal for your circumstances
  • Insurance & Protection to shelter you from unexpected events
  • Clear communication and regular updates

Find out more..

Ready to start an application or just want to ask a few questions? Complete our short form below and a member of our team will contact you same day, and usually within the hour, to discuss your situation and explain how we can help.

About us

First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

Instagram

First Time Buyers in their new home taking a self picture. Mum, dad and a little girl in the kitchen surrounded by boxes unpacking from their first move.
Guide: First Time Buyer Mortgages

First Time Buyer Mortgages Guide

Essential Guide for First-Time Buyer Mortgages

First Time Buyer Mortgages: Being a first-time buyer and needing a mortgage can be a confusing and daunting task. However, do not worry, as First Select Mortgage Brokers can guide you every step of the journey. In fact, as your mortgage broker, we are involved throughout the whole process.

This short guide below explains how the process works and how we can help secure your first home. So, get started with our first-time buyer mortgage guide!

Download your guide today:

First Time Buyers

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About us

First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin