What is the First Homes scheme? It's an England-only scheme that sells selected new-build homes to first-time buyers at a minimum 30% discount — up to 50% on some sites — off the open market value. You must be a first-time buyer, 18 or over, earning under £80,000 (£90,000 in London), and the property must be £250,000 or less after the discount (£420,000 in London). The discount is permanent, written into the title deed, so when you eventually sell you must pass the same percentage discount to the next eligible buyer.
The scheme itself sets eligibility on first-time buyer status, income and the property, not your credit history — but you still need a mortgage to complete the purchase, and that's assessed separately by whichever lender you apply to. A CCJ, default or missed payment doesn't disqualify you from First Homes, but it does mean you likely need a specialist lender for the mortgage itself, since not every lender offering First Homes mortgages will take a manual, case-by-case view of adverse credit.
Yes. Councils can prioritise key workers, local residents or lower-income buyers for the first three months a property is on sale. After that window, eligibility reverts to the national criteria only. Worth checking with the specific local authority for the development you're interested in before assuming you qualify.
You can only sell to another buyer who meets the First Homes eligibility criteria at the time of your sale, at the same percentage discount to the then-current market value. Your equity does still grow as the market rises, just more slowly than on a home bought at full price — that's the honest long-term trade-off of the lower entry cost.
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Lender criteria, rates and deposit requirements quoted on this page are indicative and subject to change without notice. Individual circumstances vary. This page provides general information only and does not constitute regulated financial advice. The Mortgage Geezer is a trading style of Access Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 301173. Registered in England No. 04427489. Registered office address Access Financial Services Ltd, Unit 1 Furtho Court, Towcester Road, Old Stratford, Milton Keynes, MK19 6AN. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.