The Your First Home scheme is a Government-backed shared equity initiative designed to help eligible first-time buyers in England.
Eligible buyers will be able to purchase a new home with a deposit of as little as 2.5% of the purchase price, along with a 20% government-backed equity loan. The remainder will be funded by a mortgage from a participating lender. You own your home in full legal terms, while the government holds a proportional stake that is interest free for 5 years.
The scheme is expected to open for applications in February 2027. More information about eligible homes, participating developers and lenders, and how to apply will be published before applications open.
The initiative is open to first-time buyers in England who are purchasing a new-build property. To be eligible for the scheme, buyers will normally need to meet the following criteria:
Full eligibility rules will be published before applications open. We recommend you speak with an Independent Financial Advisor before you apply, to ensure that this scheme is right for your circumstances.
If you’re not eligible for the Your First Home initiative, there are other ways we could help you purchase your dream Cala home as a first-time buyer. Speak to us about a deposit contribution or other ways we can support you to buy your first home.
Looking to buy your first home but live in Scotland? Take a look at the First Home Fund Scotland.
Find out more about our first-time buyer schemes below:
Your First Home scheme is available on new-build homes in England from participating developers like Cala. Property price caps will apply in each area to ensure the scheme supports access to modest homes. A full list of price caps by local authority area will be published shortly.
The scheme is aimed at eligible first-time buyers purchasing new-build homes in England through participating developers like Cala. Buyers will need to meet the scheme’s confirmed eligibility criteria, including any applicable income and property price limits.
The equity loan is linked to the value of your home, and will normally be repaid when you sell your home. You will also be able to repay some or all the loan before selling.
If the loan was worth 20% of the purchase price when you bought your home, you will normally repay 20% of the home’s value when you repay the loan, based on an independent valuation.
This means the amount you repay can go up or down as the value of your home changes.
An independent valuation may be required to establish the current market value of your home and the amount to be repaid.
Full repayment guidance will be published before applications open, including:
• Minimum repayment amounts
• Valuation requirements
• Any fees that may apply
• How repayment works when selling or remortgaging
You will not pay interest on the equity loan for the first 5 years.
The following interest rates will then apply.
|
Period |
Interest rate |
|
Years 1 to 5 |
0% |
|
Year 6 |
1.5% |
|
From year 7 |
3% |
Through the Your First Home scheme, eligible first-time buyers will be able to purchase a home using a deposit of at least 2.5% of the purchase price. For example, a £300,000 property would require a £7,500 deposit.
An equity loan is money you borrow to help buy your home, alongside your deposit and mortgage. It isn’t free money, you’ll need to pay it back.
Unlike a standard loan, it is linked to a percentage of your home’s value, rather than just the amount you originally borrowed. This means the amount you repay could go up or down if your home’s value changes.
The Government is proposing an equity loan worth 20% of the property's purchase price. This reduces the amount buyers need to borrow through a mortgage, but the loan must be repaid under the scheme’s terms.
Not yet. The scheme is expected to open for applications in February 2027.
The scheme will open for customer pre-registration before the end of the year – this will not commit you to purchasing through the scheme, but will provide further information on your eligibility for the scheme and price caps applicable in your area.
More information about eligible homes, participating developers and lenders, and how to apply will be published before applications open.
If you’re hoping to get onto the property ladder soon, now is a good time to talk to an independent financial advisor – the sales team on any of our developments can put you in touch for free, independent advice. The next step would be reserving your Cala home.
If you can't wait until the application window for Your First Home is available, Cala can still help.
Advice for first-time buyers on how the purchase process works, incentives you may be eligible for and what you can expect from your move.
Our handy homebuyer guides are filled with useful information to help you prepare for your first move.
There’s nothing quite like moving into a brand-new home. From newly installed kitchens and bathrooms to the peace of mind of knowing that your property is safe, energy efficient and low maintenance.
What’s more, you’re buying a complete blank canvas on which to stamp your own individual style. Take a look at our top reasons to buy a new home below.
Opting for a new build home means less maintenance and cost compared to older houses. Modern construction ensures durability, minimising the need for constant repairs. Enjoy a low-maintenance lifestyle and the peace of mind that your home is designed for longevity, freeing up your time and money for what matters most.
Purchase your home from a plan and tailor it to your own individual taste. Choose from a range of high-quality kitchens and bathrooms, with customisable styles, colors, and finishes that reflect your personal preferences.
Your new home is covered by an NHBC or similar industry-regulated insurance scheme covering the structural integrity of your new home from years three to 10.
The first two years of the warranty is provided by us. This means we take responsibility for fixing any quality issues during this period after you move in. We also provide you a 24-hour response service for emergency calls. We take personal pride in our customer service.
A new build home allows you to make it your own. When you move into a new home, there’s no need to live with other people’s decorating disasters! Your light, spacious and neutral interior is the perfect blank canvas on which to create a home to suit your individual taste and lifestyle.
Choosing a new home means embracing advanced energy efficiency. With superior insulation and modern energy-saving features, your new property outperforms older homes, ensuring not just comfort but also cost savings over time. Make a smart investment in a home that aligns with contemporary standards for sustainable living.
Prioritising prime locations, we meticulously select sustainable sites that offer convenient access to local schools, amenities, and robust transport links. Our focus on strategic placement ensures that your new home is not just a residence but a gateway to a well-connected and vibrant community. Choose the advantage of a location that complements your lifestyle while contributing to the long-term value of your investment.
Experience a chain-free move with our Part Exchange service. Say goodbye to the complications of being stuck in a chain, saving both time and money. Discover more about this hassle-free option and explore the convenience through our Part Exchange calculator.
Join a vibrant new community when you choose one of our developments. Whether showcasing modern or traditional architecture, our designs are crafted to nurture a strong sense of community. Experience the satisfaction of becoming a valued part of a neighborhood where connection and camaraderie thrive.
