Metro Bank, Pepper Money and Skipton Group respond to the first-time buyer Your First Home scheme and shared ownership changes in the Autumn Budget
Three lenders have welcomed chancellor John Healey’s focus on first-time buyers in Wednesday’s Autumn Budget. All three backed the headline Your First Home scheme while urging the government to go further.
The scheme, which received £4.7 billion in government funding, is designed to help around 70,000 households onto the ladder. Eligible buyers can put down as little as 2.5%, with a 20% government equity loan covering the rest.
Pre-registration for Your First Home opens before the end of 2026, with applications accepted from February 2027. For brokers with first-time buyer clients, that February 2027 date is the key planning horizon.
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How are lenders responding to the Your First Home deposit provisions?
Charles Morley, director of mortgages at Metro Bank, welcomed the deposit provisions. “It’s encouraging to see measures to help first-time buyers overcome the deposit hurdle, bringing homeownership within reach of buyers who might otherwise spend years saving while still paying rent or living with parents,” he said.
He added that the deposit is not the only barrier. “The challenge facing first-time buyers is often broader than the size of their deposit,” Morley said. “A wider approach that addresses both affordability and access to a broader range of properties, not just new build homes, would go further in helping more people take their first step onto the housing ladder.”
When will first-time buyers be able to use the Budget schemes?
Laurence Morey, chief executive of Pepper Money, gave a fuller assessment of the package. “This was a Budget that put first-time buyers front and centre, and that’s the right priority,” he said.
Pepper Money research shows the share of shared ownership buyers aged 50 or over has risen from 5% to 18% over two decades. The Budget’s decision to drop the upper age limit on the proposed First Time Buyer ISA was therefore particularly welcome, Morey said.
The new ISA replaces the Lifetime ISA and is not due to arrive until 2029. The subscription limit, bonus level, and property price cap remain subject to a future government announcement.
Morey noted a gap between ambition and delivery. “The catch is timing and scale,” he said. “Your First Home won’t take applications until February 2027 and the new ISA won’t arrive until 2029.” Pepper Money research estimates 3.5 million households who might once have expected to buy had not done so by the end of 2025.
The Budget’s treatment of shared ownership and its limits for first-time buyers drew specific praise from Morey. The rise in shared ownership income caps matters so much, he argued. Pepper Money’s research found that two thirds of prospective buyers above the old income caps said they would consider shared ownership once eligible.
Morey pointed to a practical tension in the current design. Outside London, a couple earning £100,000 will qualify for Your First Home but still fall outside shared ownership eligibility. “If the government wants a housing ladder people can actually climb, the rungs need to line up,” he said.
Skipton Group looks for delivery
Stuart Haire, group chief executive at Skipton Group, also welcomed the scheme’s direction.
Skipton Group operates through Skipton Building Society and Connells Group. The group has tracked first-time buyer affordability closely through its Home Affordability Index, and sees demand and barriers to homeownership at first-hand.
“We welcome Your First Home as an encouraging step to help more people realise their ambition of owning a home,” Haire said. “We look forward to working with Government and industry to turn this positive intention into a practical solution that enables more first-time buyers to get onto the housing ladder.”
