Government to offer first-time buyers 20% equity loans on new-builds with 2.5% deposits

The government has set out a 'Your First Home' scheme pairing 2.5% deposits with 20% government-backed equity loans on new-build homes, with full terms due at the 28 October Budget. Cutting the deposit and loan-to-value targets the barrier IMLA says has kept around 3.5 million households from buying. For buyers, monthly costs could fall against a 95% LTV mortgage; for sellers, new-build developers stand to gain most. Price caps and costs are still unpublished.