For many renters, saving a deposit is the biggest hurdle to buying a home. That's why a recently announced government initiative could be worth keeping an eye on.
🆕 Introducing “Your First Home”
The Your First Home scheme has been announced by the Government and is expected to help eligible first-time buyers purchase a new-build home with a deposit of just 2.5%, supported by a government-backed equity loan. The scheme is intended to make homeownership more accessible for those who may be struggling to save a larger deposit.
📅 More Details Coming Soon
Full details, including eligibility criteria, income limits and property price caps, are expected to be confirmed in the October Budget.
📈 Make Sure You're Mortgage Ready
While deposit requirements are important, lenders also want to see a strong track record of managing your finances responsibly. One of the simplest ways to demonstrate this is by consistently paying your rent on time. A positive rent payment history can help strengthen your financial profile and show lenders that you can manage regular monthly commitments.
If you're considering buying in the next year, speaking to a mortgage broker early can help you understand how much you may be able to borrow, what deposit you may need, and any steps you can take now to improve your chances of approval.
We’ve secured a deal with a mortgage broker who specialises in helping first time buyers and their advice is free.
🔑 A Potential New Route onto the Property Ladder
Whether you're planning to buy in the near future or simply exploring your options, the new “Your First Home” scheme could provide an exciting new route onto the property ladder.
Remember, CreditLadder can help you improve your credit score.
CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all three of the main Credit Reference Agencies in the UK, namely Experian, Equifax and TransUnion. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money. CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.
Remember the content provided in this article is for information purposes only and should not be considered as advice.