Help to Buy is coming back: what Your First Home means in Dorset
Confirmed in the Budget on 28 October 2026: Your First Home gives first-time buyers of new-build homes in England a 2.5% deposit and a 20% government equity loan, interest-free for five years. Applications open in February 2027. Here is what is confirmed, how it compares with the old Help to Buy, and what you can do in Bournemouth, Poole and Dorset in the meantime.
First-time buyers · Updated 29 October 2026
What we know
Confirmed, and still to come
Confirmed in the Budget, 28 October
- A minimum deposit of 2.5%
- A government equity loan of 20% of the price, with a repayment mortgage from a lender in the scheme for the rest
- The loan is interest-free for 5 years, then 1.5% of the loan in year 6 and 3% a year from year 7
- For first-time buyers buying a new-build home to live in, from a developer in the scheme
- Household income of £110,000 or less (£140,000 in London)
- Price caps set council by council: for example £320,000 in North Devon
- England only
- Pre-registration by the end of December, applications from February 2027, first sales from April 2027
Still to be published
- The price cap for Bournemouth, Christchurch and Poole, and for Dorset
- Which developers and lenders take part
- The full eligibility rules
- The details of repaying the loan, including any fees and valuations
- Whether it can be used alongside Forces Help to Buy
Source: GOV.UK, Your First Home, 28 October 2026. The rest is due before applications open, and we will update this page as it is published.
Try it on a home you’re looking at
How the numbers could compare
Start with the average first-time buyer price in Bournemouth, Christchurch and Poole, or type in the price of a home you have seen.
95% mortgage
Available today
| Deposit (5%) | £12,450 |
| Equity loan | — |
| Mortgage (95%) | £236,550 |
Old Help to Buy
Closed in 2023
| Deposit (5%) | £12,450 |
| Equity loan (20%) | £49,800 |
| Mortgage (75%) | £186,750 |
Your First Home
From April 2027
| Deposit (2.5%) | £6,225 |
| Equity loan (20%) | £49,800 |
| Mortgage (77.5%) | £192,975 |
Against a 95% mortgage, Your First Home would mean £6,225 less deposit and a mortgage payment about £221 a month lower for the first five years. After that the equity loan costs interest: about £62 a month in year six and £125 a month from year seven. The loan itself is repaid as 20% of the home’s value when you sell or pay it off: if the home were worth £273,900 by then, that would be £54,780.
An illustration only, not a quote. The same rate is used for each so the difference comes purely from the size of the mortgage; in practice a mortgage at 75–77.5% of the price usually gets a lower rate than one at 95%. It leaves out fees, and the interest on the equity loan from year six, which is shown below the figures.
Side by side
The old Help to Buy and Your First Home
| Help to Buy: Equity Loan2021 to 2023, now closed | Your First Homeconfirmed October 2026 | |
|---|---|---|
| Minimum deposit | 5% | 2.5% |
| Government equity loan | Up to 20% (40% in London) | 20%, London included |
| Who could use it | First-time buyers | First-time buyers |
| Homes | New builds | New builds from developers in the scheme |
| Price cap in Dorset | £349,000 (South West) | Set council by council; Dorset’s not yet published |
| Income cap | None | £110,000 household (£140,000 in London) |
| Interest-free period | 5 years | 5 years |
| After that | 1.75% of the loan a year, rising each year by RPI + 1% | 1.5% of the loan in year 6, then 3% a year |
| Where | England | England |
| Status | Last applications 31 October 2022 | Applications from February 2027, first sales from April 2027 |
The original 2013–2021 Help to Buy was also open to home movers, with a single £600,000 cap across England.
Bournemouth, Poole and Dorset
What it means locally
The average first-time buyer in Bournemouth, Christchurch and Poole pays about £249,000. On that price a 2.5% deposit is £6,225, against £12,450 for a 95% mortgage.
It only works on a new build from a developer that signs up, so the choice of homes will be narrower than the whole market. Most homes for sale here are not new builds. The price cap for our area has not been published yet; for comparison, North Devon’s is £320,000.
New builds bring their own checks. Mortgage offers can run out before a delayed plot completes, builder incentives are reported to the lender and can reduce what it will lend, and some lenders limit borrowing on new-build flats more tightly than on houses. We plan the mortgage around the build timetable.
We look after a lot of Armed Forces buyers from Hamworthy, Wool, Bovington and Blandford. Forces Help to Buy is still running: an interest-free loan of up to 50% of your salary, to a maximum of £25,000. Whether it can be combined with Your First Home has not been said yet; the full eligibility rules are due before applications open.
Buying elsewhere in the county? Mortgage advice across Dorset.
Buying before it starts
What you can use today
95% mortgages
A 5% deposit on a new or older home, widely available. The Government’s mortgage guarantee for lenders, Freedom to Buy, has been permanent since July 2025.
Up to 100%
A small number of lenders will lend up to 100% to renters who can show a record of paying their rent on time.
Shared ownership
Buy a share of a home, typically between 10% and 75%, and pay rent on the rest. Household income must be under £80,000 outside London.
Help from family
A gifted deposit, a family-assisted mortgage using a relative’s savings or property as security, or a parent on the mortgage but not the deeds.
Lifetime ISA
If you already have one, the Government adds 25% to what you save, up to £1,000 a year, towards a first home costing up to £450,000. A new First Time Buyer ISA is planned to replace it.
Stamp Duty relief
First-time buyers pay no Stamp Duty up to £300,000, and 5% on the part between £300,001 and £500,000. Above £500,000 the relief does not apply. Work it out.
Wait, or buy now?
It depends on the home and the rent you’re paying
If you have your eye on a new build and can wait until the scheme opens in spring 2027, a smaller deposit and a smaller mortgage may well be worth it. If you are buying an older home, it will not apply. And if waiting means months more rent, set that against what the scheme would save you. We will run both for you.
Get ready now
- Check your credit file with all three agencies and fix anything wrong.
- Keep three months of clean bank statements: no missed payments or gambling.
- Pull your deposit together in one place, and keep a record if family are gifting it.
- Register your interest when pre-registration opens in December.
- Get an agreement in principle, so you can move as soon as the scheme opens.
Help to Buy and Your First Home: your questions
Is Help to Buy coming back?
Not under that name. Your First Home, confirmed in the Budget on 28 October 2026, works in a similar way: a government equity loan of 20% towards a new-build home, with a deposit of 2.5% instead of the 5% Help to Buy needed.
When can I apply?
Not yet. Pre-registration opens by the end of December 2026, applications open in February 2027, and the first homes are due to be sold through the scheme from April 2027. If you are planning to buy a new build in the next year, ask us to call you and we will go through whether it fits.
Can I use it to buy an older home?
No. It covers new-build homes from developers who have signed up to the scheme, bought as your main home. For an existing home you would use a standard mortgage, a 95% mortgage, shared ownership or help from family.
Do I have to pay the equity loan back?
Yes. The loan is 20% of the price, and you repay 20% of the home’s value when you sell, or earlier if you choose, in part or in full. If the home goes up in value, so does the amount you repay. It is interest-free for five years. Then you pay interest of 1.5% of the loan in year six and 3% a year from year seven, separately from your mortgage, and it does not reduce the loan. On a £60,000 loan that is £75 a month in year six and £150 a month after that.
What was the Help to Buy price cap in Dorset?
From 2021 to 2023 the cap for the South West, which includes Bournemouth, Poole and Dorset, was £349,000. Your First Home caps are set council by council, and the full list is due shortly. The examples published so far include £320,000 in North Devon, £355,000 in Manchester and £375,000 in Reading.
I still have a Help to Buy ISA. Can I use it?
Yes. Help to Buy ISAs closed to new savers in November 2019, but you can pay into an existing one until 30 November 2029 and must claim the bonus by 1 December 2030. The bonus is 25%, up to £3,000, on a first home costing up to £250,000 outside London — which is right around the average first-time buyer price in Bournemouth, Christchurch and Poole.
Is there an income limit?
Yes. Your household income must be £110,000 a year or less outside London, and £140,000 or less in London. The lender will still check what you can afford.
Does it cover Wales or Scotland?
No. Your First Home is for England only.
Buying your first home in Dorset?
Whether you wait for the new scheme or buy now, we’ll talk you through what you could borrow and what you’d need. Leave your name and number and a CeMAP-qualified advisor will call you back.
Darren, Beth, Ben & JakeYour advisors, at our office in Poole
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