The proposed Your First Home scheme could significantly widen the new-build options available to single first-time buyers in England, according to Rightmove analysis. Meanwhile, Cambridge Building Society has launched a 98% LTV First Step mortgage for first-time buyers. These developments may help clients with smaller deposits, at a time when many renters still expect homeownership to remain out of reach.
Access is not the same as suitability. Commentary around the proposed scheme has highlighted potential new-build premiums and resale or negative-equity risks if clients need to move early. Advisers can use AI-enabled scenario tools to model deposit, monthly payment, loan-to-value and potential exit outcomes, but should ensure assumptions are transparent. Key checks include scheme restrictions, affordability under stressed rates, incentives, service charges, leasehold terms, property valuation and the client’s likely holding period.