New Build Schemes for First-Time Buyers: Buying a new build as your first home can feel like progress with a deadline attached.

There may be a fresh property, a builder’s reservation form, a mortgage offer to secure, and a legal completion date to meet. However, the real question is not only whether a scheme exists. It is whether the scheme, the mortgage, and the property all work together.

This guide explains the main new build schemes for first-time buyers during the Help to Buy closing period. It also explains the practical checks buyers should make before committing to a reservation.

At a Glance

New build schemes can help first-time buyers reduce the upfront cost of buying a home. However, each scheme has rules, deadlines, property limits, and mortgage conditions.

During the 2022 to 2023 period, Help to Buy: Equity Loan was closing to new applications. First Homes and shared ownership were still important routes for some eligible buyers.

Before reserving a new build, first-time buyers should check:

• Whether the scheme applies to the property
• Whether the buyer meets the scheme rules
• Whether the lender accepts the property type
• Whether the mortgage offer will last until completion
• Whether the builder’s incentives affect the lender’s valuation
• Whether the total monthly cost remains affordable

A scheme can open a door, but the mortgage still has to fit.

Why New Build Schemes Matter for First-Time Buyers

New build homes can appeal to first-time buyers because they are unused, often energy efficient, and may come with warranties. They can also be easier to plan around because the buyer is not waiting for an existing homeowner to move out.

However, new builds have their own mortgage issues.

A lender may look closely at:

• The deposit size
• The loan-to-value
• The builder’s incentives
• The property valuation
• The lease terms, where relevant
• The expected completion date
• The buyer’s income and credit history
• The wider affordability position

This means a first-time buyer should not treat a scheme as a shortcut. It is support, not certainty.

For wider guidance on deposits, affordability and lender checks, see our first-time buyer mortgage guide.

Help to Buy: Equity Loan 2021-2023

Help to Buy: Equity Loan was one of the best-known new build schemes for first-time buyers in England.

Under the 2021-2023 version, the scheme was available only to eligible first-time buyers purchasing eligible new build homes. Regional price caps applied, which meant the maximum property price depended on where the home was located.

The scheme was time-sensitive.

According to GOV.UK guidance on Help to Buy applications closing, buyers had to submit their Property Information Form by 6pm on 31 October 2022. The scheme was due to end on 31 March 2023.

That made timing important.

A buyer could not only focus on finding a new home. They also had to consider mortgage approval, legal work, builder deadlines, and completion times.

What First-Time Buyers Need to Check Before Using Help to Buy

Help to Buy could reduce the size of the mortgage needed at the start. However, buyers still had to pass lender affordability checks.

Important checks included:

• Whether the home was eligible under the scheme
• Whether the price fitted the regional property cap
• Whether the buyer had the required deposit
• Whether the builder was part of the scheme
• Whether the buyer could meet the application deadline
• Whether legal completion could happen before the scheme ended
• Whether future equity loan costs were affordable

The philosophical point is simple. A lower deposit can help someone start, but long-term ownership depends on the full cost being manageable.

First Homes Scheme

The First Homes Scheme was designed to help eligible first-time buyers buy a new build home at a discount.

It is different from shared ownership because the buyer purchases the whole property. It is also different from Help to Buy because it is based on a discounted sale price, not an equity loan.

Under the scheme, eligible homes are sold with at least 30% off market value. The discount stays with the property when it is sold in the future. This helps the home remain available to future eligible buyers.

The GOV.UK First Homes guide explains that new build First Homes cannot cost more than £250,000 after the discount, or £420,000 in London. Local councils may apply lower limits.

Who Might First Homes Help?

First Homes may help buyers who are priced out of the open market but can still afford a mortgage on a discounted property.

It may be relevant for:

• First-time buyers
• Local buyers
• Key workers, where local rules apply
• Buyers who meet income limits
• Buyers purchasing a qualifying new build home

However, availability depends on location and development.

Not every new build site will offer First Homes. Local rules can also affect who gets priority.

Shared Ownership and New Build Homes

Shared ownership can also help some first-time buyers purchase a new build home.

Instead of buying the full property, the buyer purchases a share and pays rent on the remaining share. This can reduce the mortgage amount needed at the start.

However, the total cost must be reviewed carefully.

A buyer may need to budget for:

• Mortgage payments
• Rent on the unsold share
• Service charges
• Ground rent, where relevant
• Buildings insurance
• Legal fees
• Staircasing costs
• Future resale rules

Shared ownership can be useful, but it is not automatically cheaper in every case. The total monthly cost matters more than the headline share.

For more detail, read our guide to shared ownership mortgages.

Builder Incentives and Mortgage Approval

Some new build developers may offer incentives to help buyers reserve a property.

These may include:

• Deposit contributions
• Cashback
• Flooring packages
• Legal fee contributions
• Stamp duty support
• Furniture or appliance packages

These offers can help with upfront costs. However, they must be disclosed to the lender.

A lender may consider whether incentives affect the property value or the buyer’s true deposit position. This is why buyers should speak to a mortgage adviser before relying on builder incentives.

An incentive is useful only if the lender accepts it.

Mortgage Offer Timing on a New Build

New build purchases can take longer than expected, especially when the property is not finished.

This matters because mortgage offers do not last forever.

First-time buyers should check:

• How long the mortgage offer lasts
• Whether the lender allows extensions
• Whether the builder’s completion date is realistic
• Whether the property will be ready before the offer expires
• Whether the buyer’s finances may change before completion

A delay can cause problems if the mortgage offer expires before the home is ready.

Deposit, Affordability and Practical Budgeting

A scheme may reduce the upfront barrier, but buyers still need a full budget.

The deposit is only one part of the cost.

First-time buyers should also budget for:

• Valuation fees
• Legal fees
• Survey costs, where needed
• Mortgage arrangement fees
• Moving costs
• Reservation fees
• Snagging checks
• Buildings and contents insurance
• Service charges, where relevant

Use our mortgage calculator to get a clearer view of possible monthly payments before applying.

Questions to Ask Before Reserving a New Build

Before paying a reservation fee, first-time buyers should ask clear questions.

• Is the property eligible for the scheme?
• Is the scheme still open for applications?
• What deadline applies?
• Is the builder registered for the scheme?
• What incentives are being offered?
• Will the lender accept those incentives?
• Is the property freehold or leasehold?
• What warranty applies to the property?
• When is completion expected?
• What happens if the build is delayed?

These questions protect the buyer from rushing into a decision that later becomes difficult to finance.

Why Mortgage Advice Matters With New Build Schemes

New build schemes can make home ownership feel closer. Yet the mortgage still has to meet lender criteria.

A mortgage adviser can help review:

• Deposit options
• Affordability
• Lender criteria
• Scheme rules
• New build lending limits
• Builder incentives
• Mortgage offer timing
• Documents required by the lender

This is especially useful when the buyer is dealing with a scheme deadline or a property that is still under construction.

You can also use Connect Experts to find first-time buyer mortgage advisers who may help with new build and scheme-related mortgage questions.