First-Time Buyer? What the Budget Means If You're Not Buying a New Build
Most of the first-time buyer headlines from last week's Budget were about the new Your First Home scheme. But it only covers new builds, and most first homes round here are existing houses and flats. Here's what actually helps if that's what you're looking for.
Your First Home, briefly.
The new scheme lets first-time buyers in England buy with a deposit from 2.5%, with the government lending 20% of the price, interest-free for the first five years. Household income is capped at £110,000 outside London, and the price of the home will be capped based on typical prices in each local authority area. Pre-registration opens by the end of December and the first loans are due from April 2027. It's worth knowing about, but it only applies to new-build homes from developers taking part, and the loan has to be paid back, with interest after the first five years.
You still won't pay stamp duty on most homes round here.
This hasn't changed, and it's the biggest help most first-time buyers get. If you've never owned a home, you pay no stamp duty on the first £300,000 of a property costing up to £500,000. The average asking price in the North West is around £273,000, so a large share of homes across Warrington are stamp duty free for a first-time buyer.
A large share of homes across Warrington are stamp duty free for a first-time buyer.
A new ISA is coming, but not until 2029.
The Budget announced a First Time Buyer ISA to replace the Lifetime ISA from April 2029. You'll be able to save up to £4,000 a year, with a 25% government bonus when you use it on your first home, up to a price of £450,000, and there's no upper age limit. If you're saving now, the Lifetime ISA still works the same way until then, and you can still open one if you're between 18 and 39. The penalty for using a Lifetime ISA on a home over £450,000 has also been cut from 25% to 20%.
You can still buy with a 5% deposit.
Plenty of lenders offer 95% mortgages on existing homes, not just new builds. They cost a bit more than deals for bigger deposits. In mid-October, the average two-year fix at 95% was just over 6%, compared with around 5.7% at 90%.
What that looks like in pounds.
As a rough example, on a £200,000 home, borrowing over 30 years:
- With a 5% deposit (£10,000), borrowing £190,000 at around 6% costs about £1,143 a month.
- With a 10% deposit (£20,000), borrowing £180,000 at around 5.7% costs about £1,040 a month.
- Stamp duty would be nothing either way.
Saving an extra £10,000 could cut your monthly payment by around £100.
As well as the lower payment, a bigger deposit gives you more choice of lenders. Your own figures will depend on the lender, your income and the length of the mortgage.
Help from family is common.
A lot of first-time buyers get help with their deposit from parents or grandparents. Lenders accept gifted deposits, but they'll usually want a signed letter confirming it's a gift and not a loan, and your solicitor will need to check where the money came from. It's worth sorting that paperwork out early, so it doesn't hold up your purchase later.
Where to start looking.
First homes come up all over our patch. In Birchwood, for example, flats have recently averaged around £116,000, which puts a first home within reach of a much smaller deposit. Terraced houses and smaller semis in Lowton, Culcheth and Birchwood come up regularly too, and buyers who are ready to move quickly tend to get them.
Get your mortgage sorted before you view.
A mortgage in principle tells you what you can borrow and shows sellers you're serious. In a market where the right home can go quickly, it often makes the difference between an offer being taken seriously or not. Rates are also moving at the moment, with a Bank of England decision on Thursday, so it's worth speaking to a broker sooner rather than later.
Thinking about your first home? We can put you in touch with the UK Mortgage Centre for free, no-obligation advice, and register you for Heads-Up Alerts so you hear about new homes before they go on the portals. Call Sam on 01925 767000 or email sam@courtyardhomes.co.uk.
This is general information, not financial advice. Sources: Which?, "Autumn Budget 2026: boost for first-time buyers, but landlords hit again"; The Negotiator, "Autumn Budget 2026: What did Chancellor Healey announce for the housing market?"; Tembo, Market Watch: Mortgage Rates, October 2026; Rightmove House Price Index, October 2026; Hutch, Birchwood price guide; GOV.UK stamp duty rates. Example repayments calculated on a standard capital and interest basis.
