FirstBuy Homes

FirstBuy is a government-backed housing option for first-time buyers. The scheme was introduced to help people who would not be able to do so otherwise purchase a brand-new property. This is made possible thanks to an affordable mortgage coupled with assistance from a Homebuy Agency and house builders who are participating in the initiative. However, you must meet the specific criteria to be eligible for the scheme.

How the scheme works 

The scheme works on the basis that you can buy your home with a mortgage of 80% the value of the property. The remaining 20% is contributed by the developer giving a 10% deposit and the FirstBuy scheme operators giving the remaining 10%. This results in three creditors registering charges on the property so they are repaid when you come to sell the property. The maximum full purchase price of a property stands at £280,000.

For the first five years you do not have to pay loan fees to the developer, nor to FirstBuy. Thereafter you will be required to pay 1.75% of the loan’s value, and this will increase yearly in line with RPI plus an extra 1%.


To be eligible for the First Buy scheme, your household must earn less than £60,000 a year and you should be unable to afford to buy a home in your area by your own means. You will also require savings in order to cover the 5% deposit on the share you are looking to buy, while, as mentioned, you will need a mortgage to cover the 80% of the value of the home you are coveting.

When it comes to selling your First Buy home, you need to repay the developer and FirstBuy 10% of the property’s current value, not the value that they paid in. Alternatively, you can pay any of the charges off early so you are able to keep more of the equity when you sell the property later.

It is important to note that there are only a handful of mortgage lenders who are signed up to the scheme, so you should check the FirstBuy website for more information.


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