Help for first-time buyers: First Homes scheme

The government offer a number of schemes to help first-time buyers get onto the property ladder. This article is the last in our series about the help that is available for first-time buyers. Following our articles on LISAs, the Right-to-Buy scheme and the Shared Ownership scheme, this article is about the First Homes scheme.

What is a first-time buyer?

As discussed in earlier articles in this series, a first-time buyer has never owned a property anywhere in the world. As well as homes you have purchased, inherited property will make you ineligible. This is the case if the inheritance was a shared or complete ownership, and even if the property was sold immediately.

Wooden models of homes on a table with a bunch of keys with a house keyring

First Homes scheme

As the name suggests, this scheme is specifically for first-time buyers. It was introduced in 2021, in a bid to ensure affordable housing was available for first-time buyers. The scheme reduces the value of the property’s market value by between 30% and 50%.

Who is eligible for the First Homes scheme?

The First Homes scheme is available to first-time buyers over the age of 18. If you are buying the property with others, you must all be first-time buyers. The combined income of all those buying the property should be no more than £80,000 before tax. You should be able to acquire a mortgage for at least 50% of the property’s value.

What type of home may be purchased with the First Homes scheme?

The property can be either a new build or purchased through an estate agent. If the latter is the case, the property must be one purchased by the sellers through the scheme.

New build properties must not cost more than £250,000 after the scheme discount has been applied.

Palms outstretched with a model of a home in one hand. A second person is handing keys on a keyring to the left palm, and is set to take the model home.

What happens if I wish to sell my property purchased through the First Homes scheme?

The property must usually be sold to someone who is eligible to buy through the First Homes scheme. The same level of discount that you received when purchasing the property, should be given when selling. This is based on the market value of the property at the time of the sale. You may give additional discount if you wish, but the same level is the minimum. More information can be found on the government website*.

How can Bell Mortgage Solutions help?

The Bell Mortgage Solutions team will ensure you’re supported throughout the process of getting on the property ladder. As a first-time buyer, we’ll assess if you’re eligible for any of the schemes we’ve discussed in this blog series. Even if you are not eligible, however, we’ll still help you find the right mortgage for your needs. Contact us to find out more.

Please note: Your home may be repossessed if you do not keep up repayments on your mortgage.

*Please be aware that by clicking onto the above link you are leaving the Bell Mortgage Solutions website. Please note that neither Bell Mortgage Solutions nor PRIMIS are responsible for the accuracy of the information contained within the linked site accessible from this page.

The information contained within was correct at the time of publication but is subject to change.