UK to confirm homebuying loan scheme in October budget
EWU•The British government said its “Your First Home” equity loan scheme would be confirmed in next month’s budget. It is expected to support 2.5% deposits with interest-free loans of up to 20% on eligible new-build homes valued up to £600,000.
1. Scheme details
The scheme would let first-time buyers borrow up to 20% of an eligible new-build property’s market value interest-free for five years, with a 75% mortgage and a 2.5% deposit. The loan must be repaid in full on sale, within 25 years or in line with the main mortgage. Household income and local property price caps would apply, and developers would be expected to contribute to costs.
2. Previous program
“Your First Home” revives the Help to Buy scheme, which ran from 2013 to 2022 and helped more than a third of a million people purchase new-build homes.
