--- title: "Your First Home Scheme Calculator: 2.5% Deposit, 20% Loan" description: "Work out your monthly cost on the government's Your First Home scheme: a 2.5% deposit and a 20% equity loan on a new build in England, compared with a 5% deposit." url: https://housemaths.com/tools/your-first-home-calculator/ publisher: House Maths (https://housemaths.com) editor: Daniil Shumko note: General information about UK property, not financial advice. Check the dated figures against the sources listed. --- # Your First Home calculator See how the government's 20% equity loan changes your deposit, mortgage and monthly payment, including what happens when interest starts in year 6. Tested against GOV.UK's own example. Rates checked 3 November 2026 Checked by [Daniil Shumko](https://housemaths.com/about/#editor), editor > **Interactive calculator.** Use it at https://housemaths.com/tools/your-first-home-calculator/. The figures below are its worked example with the default inputs. Monthly payment, years 1 to 5 **£1,248** That's £282 a month less than buying with a 5% deposit and no loan (£1,530).
Your deposit£7,500
Government equity loan (20%)£60,000
Your mortgage£232,500
Year 6 (1.5% loan interest)**£1,323** From year 7 (3% loan interest)**£1,398** The loan interest doesn't reduce what you owe. When you sell or pay it off, you repay 20% of the home's value at that time: if it's worth 10% more (£330,000) you repay **£66,000**; if it's worth 10% less (£270,000) you repay **£54,000**. **Announced, not open yet.** Pre-registration is due by the end of December 2026 and the first loans from April 2027. The details could change before then, and we'll update this page if they do. ## GOV.UK's worked example On a £300,000 new build, over 30 years at an assumed 5% rate: | | Your First Home | Standard 5% deposit | | --- | --- | --- | | Deposit | £7,500 | £15,000 | | Equity loan | £60,000 | none | | Mortgage | £232,500 | £285,000 | | Monthly, years 1 to 5 | **£1,248** | **£1,530** | | Monthly, year 6 | £1,323 | £1,530 | | Monthly, from year 7 | £1,398 | £1,530 | ## The small print people miss - **New builds only**, in England, from developers and lenders taking part. - **Price caps** follow local median prices: Liverpool £235,000, Sheffield £260,000, Leeds £305,000, Bristol £325,000, Barnet £500,000. - **You repay a share of the value**, not the amount borrowed. If prices rise, so does what you owe. - **The interest from year 6 doesn't pay the loan down.** Plan for when and how you'd repay it. - The OBR expects the scheme "could marginally raise house prices". ## Common questions ### What is the Your First Home scheme? A government scheme for first-time buyers of new-build homes in England, announced in Budget 2026. You put down at least 2.5%, the government lends 20% of the price as an equity loan, and a repayment mortgage covers the rest. The loan is interest free for five years. ### When does Your First Home open? The government says it will open for pre-registration by the end of December 2026, with full applications from February 2027 and the first loans issued from April 2027. Pre-registering doesn't commit you to buying through the scheme. ### Who can use Your First Home? First-time buyers in England buying a new-build home from a participating developer, with household income of £110,000 or less outside London or £140,000 or less in London. The price must be within your local authority's cap, for example £315,000 in Birmingham, £355,000 in Manchester or £650,000 in Westminster. ### How much do I repay? You repay the loan's share of the home's value when you sell or pay it off, not the amount you borrowed. On a 20% loan, a home worth £320,000 means repaying £64,000; worth £280,000, £56,000. ### Is the equity loan really interest free? For five years. Interest is 1.5% of the loan in year 6 and 3% from year 7. On a £60,000 loan that's £75 a month in year 6 and £150 a month from year 7, and it doesn't reduce what you owe. ## Sources 1. [GOV.UK: Your First Home](https://www.gov.uk/government/publications/your-first-home/your-first-home) 2. [GOV.UK: Your First Home local authority property price caps](https://www.gov.uk/government/publications/your-first-home/your-first-home-local-authority-property-price-caps) 3. [GOV.UK: Budget 2026](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html) This calculator gives a general figure, not tax, legal or financial advice. Where the government publishes worked examples, we test it against them. Found a problem? [Tell us](mailto:support@housemaths.com). Read next [Buying ### First-time buyer stamp duty in 2026: the £300,000 rule First-time buyers in England and NI pay no stamp duty up to £300,000 and 5% up to £500,000. Worked examples, the £500,000 cliff edge, and who qualifies. Updated 5 November 2026](https://housemaths.com/guides/first-time-buyer-stamp-duty/) More calculators - [Stamp duty calculator](https://housemaths.com/tools/stamp-duty-calculator/) - [Landlord tax 2027 calculator](https://housemaths.com/tools/landlord-tax-calculator/) - [Mortgage repayment calculator](https://housemaths.com/tools/mortgage-calculator/)