The short answer: Budget 2026 confirmed a new England-only Your First Home equity-loan scheme for some first-time buyers, alongside changes to deposit-saving products. It is important news, but it is not a promise that every first-time buyer can buy with a 2.5% deposit.
What Budget 2026 confirmed
- A 20% Government equity loan for eligible first-time buyers.
- A minimum deposit of 2.5%, with a maximum deposit of 15% under the scheme.
- A five-year interest-free period on the equity loan, followed by a gradual increase.
- Household income caps of £110,000 outside London and £140,000 in London.
- Pre-registration expected by the end of December 2026, full applications from February 2027 and first loans from April 2027.
What still matters
Local-authority price caps, participating developers and lenders, annual funding availability, the property and the mortgage affordability assessment will all matter. The Budget does not remove credit checks, affordability checks or the need to assess the costs of owning the home.
For the full explanation, read the Your First Home Budget 2026 update.
