Doulton Bridging Finance
New Build Mortgages — First Homes

First Homes Scheme 2026 — Discounted New Build Properties for First-Time Buyers

First Homes scheme 2026 — 30%–50% discount, income cap £80,000/£90,000, discount in perpetuity. How to find First Homes. Mortgage on discounted price. Doulton Bridging Finance.

The First Homes scheme offers qualifying first-time buyers a 30%–50% discount on new build properties below market value — a discount that must be maintained in perpetuity when the property is resold. On a £300,000 property with a 30% First Homes discount, the purchase price is £210,000. The mortgage is assessed on the discounted purchase price, dramatically reducing the deposit and loan required. The scheme is live but has very limited availability — no central database of First Homes properties exists.

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30%–50%
Discount below market value on First Homes properties
Perpetual
Discount maintained in perpetuity — resale must be at same percentage discount
£80,000
Maximum household income (outside London); £90,000 in London
Limited
Very limited availability — no central database of First Homes developments
Current rates · Updated August 2026Residential Mortgage Rates 2026UK residential mortgage rates in 2026 range from 4.33% for the best 2-year fix (Danske Bank, 60% LTV, August 2026) to above 6% for high-LTV or complex income cases.
View the rate guide
NEW BUILD MORTGAGES — FIRST HOMES

The perpetual discount — the key First Homes condition

When you buy a First Homes property, the discount is registered as a legal charge on the title. When you sell, you must sell at the same percentage discount below market value at the time of sale. If you bought at 30% below market value, your resale must also be 30% below market value. This means you cannot capture the full benefit of property price increases — you pass the discount on to the next buyer. For buyers who intend to sell and upsize, this limits the equity they can extract. For buyers who intend to stay long-term or want an affordable home rather than an investment vehicle, First Homes is appropriate.

Mortgage on the discounted price

The mortgage is assessed on the discounted purchase price — not the full market value. On a £300,000 property at 30% First Homes discount, the purchase price is £210,000. A 10% deposit on £210,000 is £21,000 — compared with £30,000 on the full price. The mortgage of £189,000 is assessed by the lender on the discounted price. The mortgage does not capture the full value of the property — there is an unencumbered equity element (the developer's retained discount charge) that is not mortgageable.

Finding First Homes properties

First Homes are distributed through developers who are required by planning condition to sell a proportion of units under the scheme. There is no central national database. To find First Homes: (1) Ask local housing associations. (2) Contact your local authority housing team. (3) Check individual developer websites for new build developments in your area — some list First Homes availability. (4) Ask an estate agent specialising in new build. DBF maintains relationships with developers who have First Homes allocations on current sites.

First Homes Scheme — Key Parameters August 2026

ParameterFirst Homes detail
EligibilityFirst-time buyers only. Local connection or key worker preference in most areas.
Income capHousehold income below £80,000 (outside London) or £90,000 (London).
Discount level30%–50% below full market value — set by local authority.
Resale requirementMust be sold at the same percentage discount below market value at time of resale. Discount is perpetual.
Mortgage lendersHalifax, Nationwide, Santander currently participate in First Homes mortgage lending.
Mortgage basisMortgage assessed on discounted purchase price — not full market value.
Cannot combine withHelp to Build, Shared Ownership, Own New Rate Reducer, or Movemaker.
How to find First Homes propertiesAsk local housing associations, council housing departments, or the developer on new build sites in your area. No central search database.

Worked example

First Homes purchase — 30% discount. Market value: £320,000. First Homes price: £224,000.

  • Income: £65,000 (within £80,000 cap). Key worker: teacher.
  • 10% deposit on discounted price: £22,400. Mortgage: £201,600.
  • Lender: Halifax (First Homes participant). Rate: 4.50% (2yr fix). Monthly: £1,109.
  • Standard (no scheme, full price): deposit £32,000. Mortgage £288,000. Monthly £1,586.
  • Monthly saving via First Homes: £477.
  • Resale after 7 years: market value has risen to £380,000.
  • First Homes resale price (30% discount): £266,000.
  • Equity gain: £266,000 - £201,600 outstanding (approx) - £22,400 deposit = ~£42,000 net gain.
  • Without First Homes (full price, full equity): £380,000 sale - mortgage outstanding - deposit = ~£120,000 net gain.
  • First Homes limits total equity captured — the key trade-off to understand.
The Process

How it works

01

Tell us about your purchase

Share the property details, development, scheme type (Rate Reducer, MGS, shared ownership), and your deposit. We assess your situation same working day.

02

Lender search and scheme check

We identify which lenders accept your income type, development, and property classification — including Rate Reducer and MGS eligibility where relevant.

03

Application and valuation

We manage the full application, coordinate the RICS valuation, and liaise with the developer on build schedule and offer validity.

04

Mortgage offer and completion

Once the offer is issued, we monitor build progress, manage any extensions needed for off-plan delays, and coordinate completion.

FAQs

Frequently asked questions

What is the First Homes scheme?

A government scheme that requires developers to sell a proportion of new build homes at 30%–50% below market value to eligible first-time buyers. The discount is maintained in perpetuity — when you resell, you must sell at the same percentage discount below market value at that time.

Who qualifies for First Homes?

First-time buyers only. Household income must be below £80,000 (or £90,000 in London). Many developments also require a local connection (you live or work in the area) or key worker status. Local authorities set the specific eligibility criteria for their area.

Is the discount a gift or a loan?

Neither — it is a registered legal restriction on the title. You own the property at the discounted price but must sell at a discount when you move. It is not cash you receive; it is a permanent price reduction that passes to each subsequent buyer.

Can I get a mortgage on a First Homes property?

Yes — Halifax, Nationwide, and Santander currently participate in First Homes mortgage lending. The mortgage is on the discounted purchase price. DBF confirms current lender availability and advises on the best lender for your First Homes application.

How do I find First Homes properties in my area?

There is no central national database. Contact local housing associations, your local authority housing team, and new build developers in your target area. Some estate agents specialising in new build will also have access to First Homes allocations on current sites.

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New Build Mortgages Hub

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New Build Mortgage for FTBs

New build mortgage for first-time buyers 2026 — 5% deposit routes, stamp duty relief, Own New Rate Reducer, LISA bonus. Approved Own New broker.

Shared Ownership New Build

Shared ownership new build mortgage 2026 — buy 10%–75%, 5% deposit on share, staircasing explained. Income cap £80,000/£90,000 London.

How Much Deposit for a New Build?

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