First Homes Scheme Mortgages

If you’re a first-time buyer trying to get onto the property ladder, the First Homes Scheme could be one of the most affordable routes to ownership. It allows eligible buyers to purchase new build homes at 30–50% below market value, helping more people buy their first home without overstretching financially.

At Strive, we specialise in new build mortgages and affordable home ownership schemes — it’s what we do every day. We’ve helped thousands of first-time buyers move into new build homes across the UK using initiatives like the First Homes Scheme, Shared Ownership, and Discounted Market Sale.

What Is the First Homes Scheme

The First Homes Scheme helps first-time buyers purchase a new build home (or a property previously sold through the scheme) at a discount of between 30% and 50% off the open market value.

The discount is set by an independent valuer and approved by your local authority, ensuring it’s genuine and sustainable. The key aim is to keep homes affordable not just for the first buyer, but for future generations of local first-time buyers too.

Who Can Apply

To qualify for the First Homes Scheme, you must:

• Be 18 or over
• Be a first-time buyer
• Have a combined household income under £80,000 (or £90,000 in London)
• Be able to get a mortgage for at least 50% of the discounted price
• Use the property as your main residence

Local councils may also prioritise key workers or applicants with a local connection.

Example: How the Discount Works

If a property has a market value of £350,000, a 30% discount reduces the purchase price to £245,000.

Your mortgage and deposit are both based on that discounted price. When you sell, the same discount is applied for the next eligible buyer — ensuring the property stays affordable.

How Lenders View the Scheme

Not every lender supports the scheme yet, but several well-known lenders now offer mortgages for First Homes properties:

Skipton Building Society

• Accepts new build houses and flats
• Up to 95% LTV based on the discounted price
• Minimum 5% deposit (of discounted price)

Nationwide

• Accepts new build houses and flats
• Up to 95% LTV
• Repayment basis only

Leeds Building Society

• Supports both Discounted Market Sale (DMS) and First Homes
• Standard affordability and LTI policy

Deposit, LTV and Affordability

Your deposit and mortgage loan-to-value (LTV) are based on the discounted price — not the full market value.

Example:

• Market value: £300,000
• Discounted price: £210,000 (30% discount)
• 5% deposit: £10,500
• Mortgage: £199,500

Because the loan is based on the lower price, affordability checks can be easier to meet than for a full-priced property.

Pros and Cons of the First Homes Scheme

Pros:

• Buy at 30–50% below market value
• Smaller deposit requirement
• Keeps homes affordable for future buyers
• Available on new build houses and flats
• Supported by major lenders like Nationwide, Skipton and Leeds

Cons:

• Must sell with the same discount applied
• Limited availability across developments
• Local authority approval required
• Cannot be rented out — must remain your main residence

How to Find First Homes Scheme Properties

Check local council websites
Most councils list approved First Homes or affordable ownership developments in your area.

Use major property portals
Search for terms like:

• “First Homes Scheme”
• “Discounted Market Sale”
• “Local first-time buyer scheme”

Ask local developers
Many developers reserve a portion of plots for First Homes buyers. Their sales offices can confirm availability and eligibility.

Required Documentation

You’ll need a Disclosure of Incentives Form referencing the First Homes Scheme, confirming:

• The discount level and local authority approval
• The independent valuation supporting the price
• That it’s a genuine scheme discount (not a developer incentive)

Selling or Letting a First Homes Property

You can’t rent out a First Homes property — it must remain your primary residence.

When selling, you must apply the same discount percentage for the next eligible first-time buyer. This ensures long-term affordability and compliance with the scheme.

Why Choose Strive for Your First Homes Scheme Mortgage

Buying a home under the First Homes Scheme can feel complicated — with eligibility checks, local authority sign-off and lender criteria to navigate.

That’s where Strive comes in.

We specialise in new build mortgages and affordable home ownership schemes. Our team understands every stage of the process, from developer paperwork to lender approvals.

We’ll:

• Confirm your eligibility and affordability
• Match you with the right lender
• Manage your mortgage application from start to finish
• Coordinate with solicitors, developers and the local authority

We’re proud to be recognised among the top new build mortgage brokers in the UK