First Homes scheme: Costs and affordability

What is the required deposit for the First Homes scheme?

To buy a property under the government First Homes scheme, you’ll need to secure a First Homes mortgage, with lenders like Halifax offering 95% mortgages for First Homes. This means that if you’re buying a First Homes property valued at £175,000, you’d need a minimum 5% deposit of £8,750.

Upon approval of your application, your deposit must be paid when you exchange contracts with the developer or private seller, at which point you become legally bound to purchase the home.

When planning your costs, it’s also important to bear in mind that when purchasing a new-build property, you may need to pay a reservation fee. This fee will usually be refunded if your application is unsuccessful.

How much can I borrow to buy under the First Homes scheme?

We recommend speaking to a specialist mortgage broker for more information about First Homes mortgages and determining how much you will need to borrow. As financial experts, they can answer all your questions and help you explore the best deals currently available.

If you’d like to get an initial idea of how much you may be able to borrow before speaking with a mortgage broker, you can use our mortgage affordability calculator.

How much Stamp Duty will I pay on a First Homes property?

First time buyers currently pay no Stamp Duty on the first £425,000 of any home that costs up to £625,000. As the maximum price of these homes are capped at £250,000 – or £420,000 in London – all First Homes properties are exempt from Stamp Duty.

However, this is changing from April 1^st 2025 when the threshold for first time buyers will be dropping to £300,000 for any home that costs up to £500,000. Learn more about Stamp Duty Land Tax here.

Where should I start my search for First Home scheme houses and apartments?

Have you found the information you need about the First Homes scheme, including understanding what it is and the eligibility criteria? If so, now comes the time to start looking for your new home on our property search tool.

Find your path to homeownership on Share to Buy today.