UK to unveil 'Your First Home' equity loan scheme in October budget
Britain's new 'Your First Home' scheme, a revival of Help to Buy, will be confirmed in next month's budget to boost housebuilding demand and aid first-time buyers.
The British government has announced that its new equity loan programme, named "Your First Home", will be formally confirmed in next month's budget. The policy revives the "Help to Buy" model that operated between 2013 and 2022 and is intended to stimulate economic growth by raising demand for housebuilding while assisting first-time buyers.
Under the plan, buyers would be able to purchase a new-build property with a mortgage covering 75% of its value, supported by a government-backed equity loan of up to 20% of the market value. The scheme is expected to accommodate deposits as low as 2.5%. Eligible properties would be valued at up to £600,000.
The equity loan would be interest-free for five years. Repayment would be required in full when the property is sold, within 25 years, or in line with the terms of the main mortgage.
According to the Ministry of Housing, Communities and Local Government, the scheme will include a household income cap alongside local property price caps, aimed at directing support to those most in need. Housing developers will also be expected to contribute when they sign up, helping to cover the scheme's costs.
The original Help to Buy programme helped more than a third of a million people buy a new-build home during its nine-year run.