First Homes Scheme

If you’re a first-time buyer, you may be able buy a home for 30% to 50% less than its market value! Get your foot on the property ladder.

What is the First Homes Scheme?

If you’re a first-time buyer, you could save a chunk of money when buying your own home! The First Homes scheme is a government program in England where you can save 30% to 50% of a properties market value. 

To qualify the home must be either:

  • a new home built by a developer
  • a home you buy from someone else who originally bought it as part of the scheme


The goal? This initiative aims to make homeownership more achievable for those entering the property market for the first time. 

The First Homes scheme is currently only available in England. Be sure to check with a mortgage advisor to see if you qualify and to learn more about the specifics in your area. At T&C we can help you decide if this scheme is the right fit for you!

First Time Buyer Moving To A Victorian Terrace

Are You Eligible?

To be eligible, you must be over 18 years old, a first-time homebuyer, and capable of securing a mortgage for at least 50% of the home’s price. Income limits are set at £80,000, or £90,000 if you live in London. Local councils may have additional criteria, such as prioritising essential workers or residents already living in the area.

Special Considerations for Armed Forces

Members of the armed forces and related individuals have exemptions from certain local conditions, although other eligibility criteria remain in place.

Application Steps

The application process begins by contacting a developer or an estate agent, especially for resale properties. An independent mortgage specialist should be consulted to assess your financial capability.

English Street

The Application Process

To be eligible for the first homes scheme you’ll need to complete an application and submit it to the local council. For new builds, a developer-determined reservation fee may also be needed. A T&C expert can help you along this journey to make it easy and hassle free. 

Once submitted, the local council reviews your application for eligibility. They will inform you, the developer, and your mortgage advisor of their decision. If additional information is needed, they’ll reach out to you directly.

Steps After Approval

Upon approval, the journey to homeownership begins:

1

Hiring a Conveyancer

A solicitor will be crucial to guide you through the purchase, and will ensure all local council directives are met.

2

Securing a Mortgage

You can apply for a mortgage up to 95% of the discounted purchase price.

3

Exchanging Contracts

You will pay your deposit and legally commit to the property purchase.

4

Completion

On the set date, you complete the purchase, receive the keys, and can move into your new home!

Ownership & Beyond

Some key things to consider when buying a home under the first homes scheme: 

  • Selling your house: When the time comes to sell your house in the future, you have to offer the same discount you received to another first-time buyer.
  • Renting: Renting your First Homes property is allowed, but there are limits. In most cases, it can only be rented for up to two years, with some exceptions.
  • Remortgaging: Re-mortgaging (getting a new mortgage deal) is based on the discounted value you paid, not the market value. 
  • Inheritance and Stamp Duty: Inheriting a First Homes property has specific rules, and the stamp duty tax you pay is based on the discounted purchase price, not the market value – another bonus!

 

Navigating the First Homes scheme can seem complex. We’ll guide you through every step of the process and answer any questions you might have.

First Time Buyer Homes

FAQ: First Homes Scheme

The First Home Scheme is designed to make housing much more affordable for first time buyers.The scheme can significantly reduce the financial barrier to homeownership, which can be much more common amongst first time buyers. If you meet the criteria and are looking to buy in an area covered by the scheme, we would highly recommend you consider it.
The best scheme for first-time buyers completely depends on your own circumstances; for example your income, savings, where in the country you want to buy. Alongside the First Home Scheme there are other options such as shared ownership, and the Lifetime ISA. One of our expert team members will be able to help advise you on which scheme is best for you.
For the First Home Scheme, you typically need a minimum deposit of 5% of the discounted purchase price. 
The First Homes Scheme has already been launched in certain areas as part of an initial phase, with further rollouts planned across England. The exact start date may vary depending on where you want to buy. One of our team members will be able to let you know if you can be a part of the First Home Scheme.

How does Town & Country Mortgage Services work?

At Town & Country Mortgage Services, we streamline the home-buying experience with our expert guidance, ensuring your journey is in professional hands.

As an award-winning, FCA-registered broker, our free mortgage and protection advice is designed to cater to both first-time buyers and experienced investors. Trust in Town & Country Mortgage Services for a comprehensive and hassle-free home-buying experience.

Michael Roberts
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I am more than happy to recommend Ben and his team to anyone seeking a mortgage, particularly first time buyers, as I felt Ben’s approach was not only consultative but also understanding of the stresses’ surrounding buying a first home.
Elisabeth O'Shea
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Lizzie was fantastic from start to finish!! So Professional, really helpful and super friendly!! She is knowledgable, explained everything in detail and offered me lots of options. Made a daunting task simple and straight, forward taking care of everything behind the scenes.
Sam Ali
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We would genuinely recommend Town & Country to anyone, the care, understanding and bespoke and tailored customer experience has been second to none. It's great to have an end-to-end trusted relationship and Town & Country is our trusted recommendation to anyone.

Free Initial Consultation

We'll discuss your current situation and property aspirations, and assess your borrowing potential to guide you towards suitable mortgage lenders.

Agreement in Principle (AIP)

An AIP is prepared, giving an estimate of your borrowing capacity. With an AIP, you can confidently search for properties within your budget and make offers.

Tailored Mortgage Advice

Once an offer is accepted, we provide specific lender and mortgage product recommendations. We handle all aspects of your mortgage application, ensuring a smooth process.

Michael Roberts
Read More
I am more than happy to recommend Ben and his team to anyone seeking a mortgage, particularly first time buyers, as I felt Ben’s approach was not only consultative but also understanding of the stresses’ surrounding buying a first home.
Elisabeth O'Shea
Read More
Lizzie was fantastic from start to finish!! So Professional, really helpful and super friendly!! She is knowledgable, explained everything in detail and offered me lots of options. Made a daunting task simple and straight, forward taking care of everything behind the scenes.
Sam Ali
Read More
We would genuinely recommend Town & Country to anyone, the care, understanding and bespoke and tailored customer experience has been second to none. It's great to have an end-to-end trusted relationship and Town & Country is our trusted recommendation to anyone.

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