Budget news · 28 October 2026
Your First Home, in brief
- A government loan of 20% of the price, interest-free for 5 years.
- A deposit of at least 2.5%.
- New-build homes in England only, bought as your main home, under a local price cap.
- Household income of £110,000 or less (£140,000 in London).
- A builder and a mortgage lender that are signed up to the scheme.
How the loan works
Take a £200,000 new home. You put down £10,000 (5%), the government lends £40,000 (20%), and your mortgage is £150,000, 75% of the price. Without the loan, the same deposit would leave a mortgage of £190,000, 95% of the price. A smaller share usually means a lower mortgage rate. With the smallest deposit allowed, £5,000, the mortgage would be £155,000.
Paying it back
There's no interest for 5 years. Then it's 1.5% in year six and 3% a year after that: on the £40,000 loan, £600 in year six and £1,200 a year from year seven, paid separately from the mortgage. The interest doesn't reduce the loan.
You repay the loan itself when you sell, or sooner if you like, and it's 20% of what the home is worth then. If that £200,000 home were worth £220,000, you'd repay £44,000; if it were worth £180,000, £36,000. Fees and the exact rules are due before applications open.
Price caps and dates
Each council area will have its own price cap. The government's examples: Middlesbrough £220,000, North Devon £320,000, Manchester £355,000, Reading £375,000, Outer London £500,000, Inner London £650,000. The caps for Chesterfield and Derbyshire haven't been published yet, and we'll add them here when they are.
- By the end of December 2026Pre-registration opens, with guidance for buyers. Registering doesn't commit you to anything.
- February 2027Applications are expected to open.
- April 2027The first homes are sold through the scheme.
The catch: new builds cost more
The scheme only covers new homes, and in Chesterfield new homes sold for more than older homes of the same type in 2024 and 2025: detached homes 18% more, semis 8% more, flats 21% more. Homes bought new and sold again rose 12% over about 4 years, against 14% for homes in general. So compare any new home with older ones nearby, and see our guide to new homes.
Before you reserve, ask the builder
- Is the home freehold or leasehold, and are there estate management charges?
- Which warranty does it have, and for how long?
- Is the price the same with and without any incentive?
- When will it really be finished, and what if it's late?
What a first home costs here
In Chesterfield, 50% of homes sold for under £200,000 over Sep 2025 to Aug 2026. Typical prices, cheapest area first:
| Area | Terraced | Semi | All homes |
|---|---|---|---|
| Whittington | £141,000 | £180,000 | £172,000 |
| Staveley | £156,500 | £175,000 | £180,000 |
| Brimington | £138,750 | £175,000 | £180,000 |
| Hasland | £146,500 | £192,500 | £185,250 |
| Chesterfield | £150,000 | £192,500 | £200,000 |
| Brampton | £145,000 | £211,000 | £204,000 |
| Newbold | £167,500 | £208,975 | £230,000 |
| Darley Dale | £210,000 | £230,000 | £270,500 |
| Matlock | £220,000 | £250,000 | £275,000 |
| Wingerworth | £210,000 | £240,000 | £295,000 |
| Dronfield | £206,500 | £273,000 | £300,000 |
| Walton | £185,000 | £237,000 | £305,000 |
| Bakewell | n/a | £382,500 | £365,000 |
Typical (median) sale prices over the last year, HM Land Registry. n/a means fewer than 5 sales.
Stamp duty
First-time buyers pay nothing on homes up to £300,000, and 5% on the part between £300,000 and £500,000. Above £500,000 the relief goes. The Budget didn't change this.
£200,000: £0 · £300,000: £0 · £350,000: £2,500 · £450,000: £7,500 · £500,000: £10,000 · £510,000: £15,500
Saving with a Lifetime ISA
If you opened one aged 18 to 39, you can pay in up to £4,000 a year and the government adds 25%, up to £1,000 a year, for a first home costing up to £450,000. From 29 October 2026, buying above that costs 20% of what you take out, down from 25%, and a new First Time Buyer ISA replaces it for new savers from April 2029. The rules on gov.uk.
The other costs
- Solicitor, including VAT£1,500
- Searches£350
- Survey (RICS Level 2)£600
- Mortgage arrangement fee, where charged£1,000
- Removals£1,000
Rough starting points. Get quotes for your own move.
From saving to the keys
- Check your credit file. It's free with the main credit reference agencies. Fix any mistakes and get on the electoral roll.
- Save the deposit and the costs. Budget for the solicitor, survey and moving as well as the deposit, and keep three months of bank statements tidy.
- Get an agreement in principle. A lender's rough idea of what you can borrow. It shows sellers and builders you're ready.
- Register for Your First Home. If you're looking at new builds, pre-register from December 2026. It doesn't commit you.
- View, compare and offer. Compare new homes with older ones nearby. Our area guides show what homes really sell for, street by street.
- Instruct a solicitor and a survey. On a new build, ask about the lease, estate charges and the builder's warranty.
- Exchange contracts. You pay the deposit and the date is fixed. From here, pulling out costs money.
- Complete and collect the keys. On a new build, list any faults in the first weeks so the builder puts them right.
Quick answers
- What is the Your First Home scheme?
- A government equity loan of 20% of the price of a new-build home in England, for first-time buyers. It's interest-free for 5 years, and you need a deposit of at least 2.5%. It was confirmed in the Budget on 28 October 2026.
- When does Your First Home open?
- Pre-registration opens by the end of December 2026, applications are expected to open in February 2027, and the first homes will be sold through the scheme from April 2027.
- How much interest do you pay on the Your First Home loan?
- None for the first 5 years. Then 1.5% in year six and 3% a year from year seven. On a £40,000 loan that's £600 in year six and £1,200 a year after that.
- What is the Your First Home price cap in Chesterfield?
- It hasn't been published yet. The government has given examples, such as £220,000 in Middlesbrough and £355,000 in Manchester, and says the full list by council is coming shortly.
- Do first-time buyers pay stamp duty in Chesterfield?
- Not on homes up to £300,000. Between £300,000 and £500,000 you pay 5% on the part above £300,000. The Budget didn't change this.
- How much is a first home in Chesterfield?
- The typical home in Chesterfield sold for £200,000 over Sep 2025 to Aug 2026, and 50% sold for under £200,000. A typical terraced home went for £150,000 and a semi for £192,500.
General information, not financial or mortgage advice. Scheme details from Your First Home on gov.uk and the Budget 2026 documents, checked 28 October 2026. Prices: HM Land Registry data © Crown copyright and database right 2026, Open Government Licence v3.0.