In the Autumn Budget on 28 October 2026, the UK Government unveiled “Your First Home” — a new £4.7 billion government-backed equity loan scheme replacing Help to Buy to help 70,000 first-time buyers across England purchase a home with a deposit of just 2.5%.
With pre-registration opening by December 2026, full applications starting in February 2027, and the first completions from April 2027, first-time buyers and parents across Hastings, St Leonards-on-Sea, Bexhill-on-Sea, Battle, Hailsham, Polegate, Eastbourne, Lewes, Brighton & Hove, and West Kent are asking two big questions: How does the April 2027 scheme work? And should I wait until Spring 2027 to buy a new build, or use the low-deposit and 0%-deposit mortgages available on existing homes right now?
At Transparent Mortgage Services (TMS) in Hastings (17 Havelock Road, Hastings, TN34 1BP), we break down every rule, income cap, interest rate, and monthly cost from the official Ministry of Housing, Communities and Local Government (MHCLG) guidance — alongside the specialist first-time buyer mortgages available today.
1. How the New “Your First Home” Equity Loan Scheme Works (April 2027)
Published alongside the Autumn Budget on 28 October 2026, Your First Home is a government equity loan scheme for first-time buyers purchasing a qualifying new-build home in England from a participating developer:
- Minimum Buyer Deposit of Just 2.5%: Eligible first-time buyers only need a 2.5% cash deposit (up to a maximum deposit of 15%).
- 20% Government Equity Loan (Interest-Free for 5 Years): The government provides an equity loan worth up to 20% of the purchase price, completely interest-free (0%) for the first 5 years.
- 77.5% Repayment Mortgage: Combining a 2.5% cash deposit with a 20% equity loan means you only need a 77.5% Loan-to-Value (LTV) repayment mortgage from a participating lender — cutting both your required deposit and your monthly mortgage payments compared with a standard 95% LTV mortgage.
- 100% Ownership from Day One: You own the legal title from completion; the 20% equity loan sits as a second charge secured against the home.
- New-Build Homes Only: Like the original Help to Buy scheme, Your First Home applies strictly to new-build properties from registered developers. It cannot be used on second-hand Victorian terraces, converted Regency flats, or older houses.
2. Key Dates & Launch Timeline: December 2026 to April 2027
- By End of December 2026: Customer pre-registration opens on GOV.UK alongside the full list of Local Authority property price caps, full scheme terms, and developer registrations.
- February 2027: Full customer applications open with participating mortgage lenders and registered new-build developers.
- April 2027: First property sales complete and the first equity loans are issued (£700 million allocated for 2027–28, then £1 billion per year over the next four years).
3. Who Qualifies in East Sussex & Kent? Income Caps & Property Price Limits
- Maximum Household Income Cap (£110,000 Outside London): Across East Sussex, West Sussex, Brighton & Hove, and Kent, your total gross annual household income must be £110,000 or less — whether applying solo or jointly as a couple (in London, the cap is £140,000).
- First-Time Buyer Status: All applicants must be genuine first-time buyers who have never owned residential property in the UK or abroad and must live in the home as their main residence.
- Local Authority Median Price Caps: Each council area has a maximum purchase price tied to local median prices (illustrative caps include £375,000 in Reading, £355,000 in Manchester, £320,000 in North Devon, £500,000 in Outer London, and £650,000 in Inner London). Exact caps for Hastings, Rother (Bexhill & Battle), Wealden (Hailsham, Polegate, Uckfield & Crowborough), Eastbourne, Lewes, and Brighton & Hove will be published before pre-registration in December 2026.
4. Worked Numbers: Buying a £300,000 Home Under “Your First Home” vs a Standard 95% Mortgage
Using the official GOV.UK illustration for a £300,000 new-build home (30-year repayment mortgage at an illustrative 5.0% interest rate):
- Upfront Deposit Required: Under Your First Home (2.5% deposit), you need just £7,500 cash deposit, a £60,000 (20%) government equity loan, and a £232,500 repayment mortgage. Under a standard 95% LTV mortgage (5% deposit), you need a £15,000 deposit and a £285,000 mortgage.
- Years 1 to 5 Monthly Cost (0% Equity Loan Interest): Your monthly payment on the £232,500 mortgage is £1,248/month, plus £0 equity loan interest = £1,248/month total. Compared with £1,530/month on a standard £285,000 (95% LTV) mortgage, that saves £282 every month (£3,384/year, or £16,920 over 5 years).
- Year 6 Monthly Cost (1.5% Equity Loan Interest): In Year 6, the £60,000 equity loan charges 1.5% interest (£75/month), taking the total monthly cost to £1,323/month.
- Year 7 Onwards Monthly Cost (3.0% Equity Loan Interest): From Year 7 onwards, equity loan interest rises to 3.0% (£150/month), taking the total monthly cost to £1,398/month.
Crucial Repayment Rule: Monthly interest payments do not reduce the equity loan balance, and the 20% repayment rises or falls with your home’s market value (if your £300,000 home rises to £320,000, 20% equals £64,000; if it falls to £280,000, 20% is £56,000). At TMS, we map out a clear Year 5 remortgage strategy from day one.
5. Lifetime ISA Penalty Cut to 20%, New First-Time Buyer ISA & Stamp Duty Relief
- Lifetime ISA (LISA) Withdrawal Penalty Cut from 25% to 20%: Effective immediately from 28 October 2026, first-time buyers using a Lifetime ISA to buy above the £450,000 LISA cap face a 20% withdrawal adjustment instead of the 25% penalty — so South East buyers purchasing above £450,000 no longer lose any of their own capital.
- New “First-Time Buyer ISA” & April 2027 Cash ISA Rules: A simpler First-Time Buyer ISA will replace the LISA in future (paying the bonus at completion), while existing LISA savers can keep contributing up to £4,000/year. From April 2027, the annual Cash ISA limit for under-65s moves to £12,000 within the £20,000 overall ISA allowance.
- First-Time Buyer Stamp Duty (SDLT) Relief (£0 Up to £300,000): Eligible first-time buyers pay 0% Stamp Duty on the first £300,000 and 5% from £300,001 to £500,000 (on purchases up to £500,000).
6. “Your First Home” (20% Equity Loan) vs “First Homes” (30%–50% New-Build Discount)
- Your First Home (Launching Feb/April 2027): Full market price on a participating new build using a 2.5% deposit + 20% government equity loan + 77.5% mortgage (£110,000 income cap outside London).
- First Homes Scheme (30% to 50% Permanent Discount): Available now on selected section-106 new-build plots across Hailsham, Hellingly, Polegate, Bexhill-on-Sea, Hastings, and Eastbourne. You buy at a 30% to 50% discount below market value (capped at £250,000 after discount outside London; £80,000 income cap; local connection/key-worker priority) with no equity loan — passing the same 30% discount percentage to the next buyer when you sell.
7. Why You Don’t Have to Wait Until April 2027: 5 Specialist Options Available Today
If you want to buy an existing Victorian terrace, 1930s semi, or converted flat — or move before Spring 2027 — our whole-of-market panel at Transparent Mortgage Services offers five solutions available right now:
- 100% LTV “Track-Record” Mortgages (0% Deposit on Existing Homes): Renters with a clean 12-month record of paying rent and bills can borrow up to 100% of the purchase price with £0 deposit on existing houses and flats.
- £5,000 Flat-Deposit (Up to 99% LTV) Mortgages: Buy an existing house up to £500,000 with just a £5,000 deposit (1%–2%) — with no equity loan or Year-6 interest.
- 5.5x to 6x Income-Stretch Mortgages: Panel lenders offer 5.5x to 6x income multiples for eligible first-time buyers and qualified professionals (NHS clinicians, teachers, accountants, solicitors, engineers).
- Joint Borrower Sole Proprietor (JBSP) Mortgages: Parents add their income to boost your borrowing while keeping only your name on the title deeds — preserving your 0% First-Time Buyer Stamp Duty relief up to £300,000 and avoiding the 5% Additional Dwelling Stamp Duty surcharge.
- Shared Ownership (5% Deposit of Your Share): Buy a 10% to 75% share in Hastings, Bexhill, Hailsham, Polegate, and Eastbourne with just a 5% deposit of the share price.
8. Book Your Free First-Time Buyer Readiness Check in Hastings & East Sussex
Whether you want to buy an existing home now with a 0%, £5,000, or 5% deposit, or get mortgage-ready before Your First Home pre-registration opens in December 2026, our CeMAP-qualified advisers at Transparent Mortgage Services (TMS) (17 Havelock Road, Hastings, TN34 1BP) will run a free, soft-search comparison of your monthly costs. Call 01424 444597, email info@tms-fs.co.uk, or book your free consultation online. Your home may be repossessed if you do not keep up repayments on your mortgage.
