First Homes Scheme Mortgages
First Homes are new homes in England sold to local first-time buyers at a discount of at least 30 per cent, and the discount stays with the home when it is sold on. The scheme still exists, but councils no longer have to require these homes, supply has fallen away and the lender list is short. This page sets out where it stands and how the mortgage works.
- The discount, price caps and income caps
- Which lenders lend on the discounted price
- How the permanent discount affects resale and remortgage
- An honest view of the scheme's future
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How First Homes work
A First Home is sold at a discount of at least 30 per cent of market value. A council can require a larger discount of 40 or 50 per cent where it can show local need. After the discount, the price must be no more than £250,000, or £420,000 in Greater London.
Buyers must be first-time buyers, and household income must generally be no more than £80,000, or £90,000 in London. Councils can add local connection, key worker or lower income criteria, and they decide who qualifies.
The discount is not a one-off gift. A legal restriction on the title keeps the home discounted for every future sale, so when you sell you sell at the same percentage below market value to another eligible buyer. That is the trade-off for the lower price, and it shapes how lenders view the property.
First Homes are usually delivered by developers as part of the affordable housing on a new site, so they are new build homes with the usual new build mortgage issues around warranties, incentives and offer validity.
The discount reduces the price you pay and the price you will receive. It does not create equity you can unlock later, because the restriction stays on the home.
At a Glance
First Homes lender criteria compared
From each lender's own published criteria, checked 11 October 2026.
| Lender | Maximum lending | Points to know |
|---|---|---|
| Nationwide | Up to 95% of the discounted price | First-time buyers only. Minimum 30% discount. Price capped at £250,000, or £420,000 in London, and household income at £80,000, or £90,000 in London |
| Halifax | Up to 95% of the discounted price | England only. Discounts between 30% and 50% accepted |
| Leeds Building Society | Considered | Accepts First Homes. Terms confirmed case by case through its intermediary team |
Newcastle Building Society withdrew its First Homes product in September 2026. The lender list is short and can change quickly, so check acceptance before you reserve.
Where the scheme stands now
No longer mandatory. When First Homes launched, a quarter of the affordable homes secured from new developments had to be First Homes. The national planning framework published in December 2024 removed that requirement, and councils now decide whether to ask for them at all. Many have moved their affordable housing towards social rent and shared ownership.
Fewer homes. With the requirement gone and no dedicated government funding, the number of First Homes being built has fallen. Homes already sold keep their discount and their restrictions.
Remortgaging later. When your fixed rate ends you need a lender that accepts the First Homes restriction. The lenders above will generally consider their existing customers, but the choice of new lenders is narrower than for an unrestricted home.
Alternatives. If a First Home is not available, or the restrictions do not suit you, shared ownership, a 95 per cent mortgage on an open-market home, or family help through a family deposit mortgage may get you to a similar monthly cost without a permanent restriction.
A First Home can be an excellent buy if you plan to stay for many years. If you expect to move within a few years, weigh the resale restriction carefully against the discount.
Where to go next
The pages most often read alongside this one.
How we arrange a First Homes mortgage
Eligibility comes first, then the lender.
Check eligibility
Your first-time buyer status, income and any local criteria set by the council.
Find a lender
Lenders that accept First Homes and the discount level on that site.
Agreement in principle
Often needed before the developer or council confirms your application.
Application
We submit with the council’s eligibility confirmation and the developer’s paperwork.
Offer and completion
We manage the case to completion, inside the developer’s timetable.
Read more about affordable home schemes
Related schemes and guides.
Found a First Home?
Tell us the discounted price and your income. We will tell you which lenders will lend on it before you commit.
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First Homes Scheme: Frequently Asked Questions
What is the First Homes scheme?
A scheme in England under which new homes are sold to eligible first-time buyers at a discount of at least 30 per cent of market value. The discount stays with the home, so it is resold at the same discount to another eligible buyer.
Is the First Homes scheme still running?
Yes, but on a smaller scale. Since December 2024 councils have not been required to ask developers for First Homes, so fewer are being built. Homes already sold keep their discount and restrictions.
How much deposit do I need for a First Home?
Usually 5 per cent of the discounted price. Nationwide and Halifax both lend up to 95 per cent of the discounted price.
What are the price and income limits?
After the discount, the price must be no more than £250,000, or £420,000 in London. Household income is generally capped at £80,000, or £90,000 in London. Councils can set tighter local rules.
Which lenders offer First Homes mortgages?
Nationwide, Halifax and Leeds Building Society publish acceptance. Newcastle Building Society withdrew its product in September 2026. The list is short, so check before you reserve.
Can I sell a First Home at full market value?
No. A restriction on the title means it must be sold at the same percentage discount to another eligible buyer. If no buyer meeting any local criteria comes forward, the national eligibility rules usually apply instead, but the discount remains.
Can I remortgage a First Home?
Yes, but only with a lender that accepts the First Homes restriction. The choice is narrower than for an unrestricted home, so it is worth planning ahead of your fixed rate ending.
Can I let out a First Home?
Not normally. First Homes are meant to be your main home. Letting is restricted by the title and would need the council’s agreement and your lender’s consent.
Is a First Home better than shared ownership?
It depends. A First Home gives you full ownership at a discount, with no rent, but the discount is permanent. Shared ownership lets you start with a smaller share and staircase later, but you pay rent until you own it all.
Does the discount count as my deposit?
No. Lenders lend on the discounted price, which is what you are paying. You still need a deposit on top, usually at least 5 per cent of that price.
Written and reviewed by Osman Emin, CeMAP, mortgage and protection adviser · FCA register OCE01003 · Updated YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.