The short answer: Budget 2026 says the scheme minimum deposit will be 2.5%, with a maximum deposit of 15%. That does not mean every first-time buyer can buy with 2.5% saved.
What the 2.5% figure means
The announced structure is a 20% Government equity loan alongside a mortgage and the buyer's deposit. The scheme is intended for eligible first-time buyers in England and is expected to focus on participating new-build homes.
What could affect eligibility
- Household income must be within the relevant cap.
- The property must be within the relevant local-authority price cap.
- The developer and lender must participate where required.
- The lender must still be satisfied with affordability, credit history and the property.
- You need money for legal work, surveys, moving and other buying costs as well as the deposit.
A 2.5% deposit is therefore a scheme minimum, not a promise of a mortgage, a particular rate or a completed purchase.
