Ta-dah! Burnham’s new deposit scheme for first-time buyers.

How could it work?

Under the proposed scheme:

• You put down a minimum 2.5% deposit

• The government provides an equity loan of up to 20% of the property value

• You take out a mortgage to fund the rest

• The government equity loan will have an initial interest-free period

The scheme will be available to eligible first-time buyers purchasing new-build properties from participating developers.

There will also be household income limits and local property price caps, although the details haven’t been announced yet. The full scheme is due to be confirmed at the Budget on 28 October 2026.

What could a 2.5% deposit look like?

For a £200,000 home, 2.5% is £5,000.

For a £250,000 home, it’s £6,250.

And for a £300,000 home, it’s £7,500.

For first-time buyers who have a decent income but are struggling to build a large deposit, particularly without help from the Bank of Mum and Dad, that could make a big difference.

But a smaller deposit doesn't automatically mean you can buy

This is the important bit.

The 2.5% deposit is only one part of the equation.

You’ll still need to qualify for a mortgage, and the amount you can borrow will depend on things such as your income, outgoings, credit history and personal circumstances.

And because this is an equity loan, you'll need to understand what that means for you in the future, including how and when the government loan needs to be repaid.

That’s why it’s worth getting mortgage advice before you start scrolling through new-builds and choosing soft furnishings.

Talk to Moat to understand your options

Even if you don’t have a big deposit saved today, don’t automatically assume buying your first home is years away.

There are already a range of mortgages and schemes designed to help first-time buyers, and the Your First Home scheme could add another option.

At Moat Mortgages, we’ll happily talk to first-time buyers anytime and without any obligation.

We can look at your circumstances, work out how much you could potentially borrow and explain the different routes that could help you get onto the property ladder.

And because our mortgage advice is completely fee-free, finding out where you stand won’t cost you a penny.