First Homes Scheme Mortgage Lenders: Your Guide to Affordable Homeownership in the UK

Securing a mortgage through the First Homes scheme opens the door to affordable homeownership for first-time buyers across England. 

This guide will help you understand the scheme, discover participating lenders, compare mortgage options, and navigate the application process to find the best first homes scheme mortgage lenders.

What Is the First Homes Scheme?

The First Homes scheme is a government initiative designed to help first-time buyers purchase new-build homes at a discount of at least 30% off the market price. 

In some areas, discounts can reach 50%. Eligibility requires that buyers:

• Are first-time buyers (no previous property ownership)
  
• Have combined household incomes under £80,000 (or £90,000 in London)
  
• Can legally purchase and occupy the property as their main home
  

The scheme applies only to new-build properties sold by participating developers and lenders. 

Once you secure a discounted property, a mortgage through a first homes mortgage lender covers the remaining purchase price, making homeownership more attainable for those struggling with high deposits.gov

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Key Takeaways

First Homes scheme helps first-time buyers in England purchase new-build homes with a minimum 30% discount, and up to 50% in some areas.gov+1
Buyers must be first-time purchasers, aged 18 or over, and have a household income under £80,000 (£90,000 in London).henrydannell+1
Mortgage lenders require buyers to get a mortgage for at least 50% of the discounted price, with a minimum 5% deposit.haysto+1
Major participating lenders include Nationwide, Halifax, Leeds Building Society, Skipton, Newcastle Building Society, Darlington, Chorley, and Pepper Money.ptmortgagesltd
The scheme gives priority to key workers and local residents for the first 3 months a property is on the scheme.gov+1

Resale restrictions ensure the discount is passed on to future buyers, maintaining long-term affordability.haysto+1
Applying involves checking eligibility, reserving a property, choosing a participating lender, and passing lender affordability checks.ptmortgagesltd+1
First Homes is only available on eligible new-build properties and is not compatible with other government incentives like Help to Buy or Shared Ownership for the same purchase.gov+1
For more details or eligibility, visit the official GOV.UK guide: https://www.gov.uk/first-homes-schemegov

Why Choose First Homes Scheme Mortgage Lenders?

Participating lenders understand the unique structure of discounted-market-sale mortgages and provide:

• Low deposit options: Some lenders offer as little as 5% deposit mortgages on the discounted price.
  
• Government-backed security: Lenders can rely on government support, potentially reducing interest rates and fees.
  
• Specialist guidance: Dedicated First Homes mortgage providers guide you through eligibility checks, application forms, and the legal process.
  

Choosing a first homes approved lender ensures you benefit from tailored products, competitive mortgage rates, and a smooth borrowing experience.

List of Participating Mortgage Lenders

UK buyers can access First Homes mortgages through a variety of major banks, building societies, and specialist lenders.

Major Building Societies

• Nationwide Building Society: Offers First Homes mortgages with competitive rates and a streamlined digital application process.
  
• Skipton Building Society: Provides both fixed- and variable-rate deals, plus dedicated first-time buyer support.
  
• Leeds Building Society: Known for low-fee options and personalized advice for FTB applicants.
  

High-Street Banks

• Halifax: Features a First Homes portfolio with LTVs up to 95% on the discounted price and optional fee waivers.
  
• Pepper Money: Specialist lender offering flexible underwriting for higher-risk borrowers under the scheme.
  

Specialist & Regional Lenders

• Newcastle Building Society: Emphasizes local expertise, with competitive products in northern England.
  
• Darlington Building Society: Offers First Homes mortgages tailored to Teesside buyers.
  
• Chorley Building Society: Focuses on Lancashire first-time buyers, combining local knowledge with government scheme support.
  
• Mansfield Building Society: Provides FTB-centric service and straightforward eligibility guidance.
  

These first homes participating lenders have demonstrated success in helping first-time buyers unlock new-build properties at discounted rates.

How to Compare First Homes Mortgages

When comparing first homes mortgage providers, evaluate these factors:

Factor	What to Look For
Interest Rate	Fixed vs variable, introductory discounts
Loan-to-Value (LTV)	Maximum LTV on discounted price (e.g., 90%, 95%)
Fees	Arrangement fees, valuation fees, legal fees
Repayment Flexibility	Overpayment options, payment holidays
Customer Service	Specialist FTB support, digital tools

For example, Nationwide may offer a 4.2% five-year fixed rate at 90% LTV, whereas Halifax might provide a 1.5% fee waiver and a 4.5% rate with a 95% LTV option. 

Always ask for a first homes mortgage comparison to understand total costs over the mortgage term.

First Time Buyer Considerations

First homes mortgages sit alongside other support schemes:

• Help to Buy: Equity loans up to 20% (40% in London) on new builds, repayable at sale or mortgage maturity.
  
• Shared Ownership: Buy a share (25–75%) of a home and pay rent on the remainder.
  

Comparing first homes vs help to buy, note that First Homes discounts remain attached to the property in perpetuity, whereas Help to Buy loans must be repaid with interest. 

Shared Ownership requires ongoing rent payments, but lower initial capital outlay.

Step-by-Step Application Process

Securing a First Homes mortgage involves:

1. Pre-approval & Eligibility Checks
   
   • Submit identity, income statements, and proof of eligibility to your chosen lender.
     
2. Property Reservation
   
   • Reserve a discounted new-build with the developer and pay a reservation fee.
     
3. Mortgage Application
   
   • Complete lender-specific forms, provide documentation, and undergo affordability assessment.
     
4. Valuation & Legal Work
   
   • Lender arranges a discounted-price valuation. Conveyancer handles contracts and searches.
     
5. Final Approval & Completion
   
   • Once approved, you sign mortgage deeds and complete the purchase with the developer.
     

Your first homes mortgage application typically takes 6–8 weeks from reservation to completion.

Frequently Asked Questions

Location-Specific Guides

London

With higher property prices, First Homes discounts are capped at 50%, and lenders like Nationwide London branch offer tailored FTB products.Manchester

Regional lenders such as Skipton and Chorley support Greater Manchester buyers with competitive rates and local expertise.

Birmingham

Halifax and Newcastle Building Society provide digital and face-to-face services for West Midlands applicants.

Conclusion & Call to Action

The First Homes scheme transforms the path to homeownership for first-time buyers. By choosing a first homes scheme mortgage lender, you access discounted new-builds with low deposits and government-backed security.

Find your First Homes lender today: compare rates, check eligibility, and start your application to unlock your first discounted home.

1. https://www.gov.uk/first-homes-scheme

Citation and source: 

1. https://www.gov.uk/first-homes-scheme
2. https://parkfinancial.ie/first-home-scheme/
3. https://haysto.com/guides/specialist-mortgages/first-homes-scheme
4. https://henrydannell.co.uk/education-hub/blogs/first-homes-scheme-explained
5. https://ptmortgagesltd.co.uk/first-homes-scheme-what-is-it-and-can-i-benefit/
6. https://www.firsthomescheme.ie
7. https://www.aavas.in/blog/benefits-of-home-loan-for-the-first-time-home-buyers
8. https://marathon.in/home-buying-guide/detailed-guide-on-first-time-home-buying/
9. https://www.gov.uk/first-homes-scheme/letting-the-property

■ gov.uk – First Homes scheme: first-time buyer’s guide, eligibility, discounts, and participating lenders.
■ MoneySavingExpert.com – “First Homes scheme: how it works and who can apply,” June 30, 2025.
■ Skipton Building Society – First Homes England scheme mortgage details, September 11, 2024.
■ Halifax.co.uk – Government housing schemes and First Homes mortgage criteria.
■ Nationwide.co.uk – Mortgages for first-time buyers including First Homes products, October 7, 2025.
■ Pepper.money – First Homes mortgage products overview, September 15, 2025.
■ LeedsBuildingSociety.co.uk – First Homes / Discounted Market Sale Mortgages, August 28, 2025.
■ Newcastle Building Society – Participating lender guidance for First Homes scheme.
■ Darlington Building Society – First Homes scheme mortgage criteria.
■ Chorley Building Society – First Homes mortgage eligibility and products.
■ Mansfield Building Society – First Homes product information for first-time buyers.
■ Help to Buy vs First Homes comparison sources (e.g., HelpToBuy.gov.uk).
■ FCA.org.uk – Mortgage lending statistics and market overview, September 2025.