Helping local first-time buyers and key workers onto the property ladder with the First Homes Scheme
If you’re an eligible first-time buyer, you may be able buy a home for 30% to 50% less than its market value. This offer is called the First Homes scheme launched in June 2021 as another government initiative to help first-time buyers get on the property ladder.
The home can be a new home built by a developer or a home you buy from someone else who originally bought it as part of the scheme. The First Homes scheme is only available in England.
First Homes discounts
To be eligible to apply you must be 18 or older, a first-time buyer, able to get a mortgage for at least half the price of the home and buying the home as part of a household where total income is no more than £80,000 (or £90,000 if you live in London). The local council may also set some additional eligibility conditions. Click here to view the Government website for the full First Home Scheme Guide.
For example, some councils may prioritise giving First Homes discounts to: essential workers; people who already live in the area; and those on lower incomes.
Exemptions for armed forces and their families
There are exemptions for armed forces and their families. You’re exempt from council conditions about being an essential worker or living in the area if you’re: a member of the armed forces; the divorced or separated spouse or registered civil partner of a member of the armed forces; a widow or widower of a deceased member of the armed forces (if their death was caused wholly or partly by their service); or a veteran who left the armed forces in the last five years.
You can look for new homes in your area that are advertised by developers as part of the First Homes scheme. Every home that’s sold is valued by an independent surveyor to make sure the discount is based on actual market value.
Fee amount set by the developer
The homes cannot cost more than £420,000 in London, or £250,000 anywhere else in England, after the discount has been applied. You can only sell the home to someone who is eligible to buy a First Home. You must give them the same percentage discount that you got, based on the home’s market value at the time of sale.
To apply you need to contact the developer (or estate agent if you’re buying from a previous First Homes buyer) and tell them you want to buy a First Home. They’ll help you to complete the application, then send it to the local council. You’ll have to pay a fee if the First Home you want to buy is a new build. The amount is set by the developer. You’ll get the fee back if your application is unsuccessful.
Number of major high-street lenders
There are a number of major high-street lenders along with local building societies that are currently offering 95% loan-to-value mortgages for First Homes.
The local council will check your application to make sure you’re eligible. They’ll contact you to tell you their decision. They’ll also contact the developer and your mortgage adviser. If your application was missing any information, they may ask you to provide it.
Your New Mortgage
With house prices still stubbornly high, the First Homes scheme offers hope to many first-time buyers. So if you are a first-time buyer, wanting to take the leap into the property market we understand that this can be exciting and daunting at the same time. Please don’t worry, we’re here to help! Our team love helping first-time buyers find their mortgage to fund their first home, you can be re-assured that our friendly and knowledgeable mortgage advisors will guide you through the entire process. Get in touch today at 0800 612 5596 to schedule a free, no-obligation consultation with our expert team. Let us help you make your homeownership dreams a reality. Remember we do not charge you a broker fee so you will not have to pay us a fee for the work in which we do, we get paid by the lender.
We do not charge a fee for mortgage advice.
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