The proposed Your First Home scheme has drawn attention for its 2.5% deposit requirement and government-backed equity loan of up to 20% of a property’s value. Yorkshire Building Society data also points to continued first-time-buyer resilience despite affordability pressures and wider economic uncertainty.
Advisers should prepare for demand by building a consistent fact-find around deposit source, scheme eligibility, property restrictions, future repayment of the equity loan and the full costs of ownership. Lower upfront deposits can widen access, but they can also mean a higher loan-to-value mortgage and more sensitivity to price movements or refinancing conditions.
Digital onboarding and AI-assisted checklists can help first-time buyers assemble documents, model monthly costs and understand the sequence from offer to completion. However, advice must remain clear on assumptions and limitations, particularly where clients are comparing a two-year fix, five-year fix or tracker in an uncertain rate environment.