Shared Ownership and Your First Home comparison
28 October 2026
What is the Your First Home scheme?
Shared Ownership and Your First Home are both government-backed schemes that are aimed at helping more people onto the property ladder. Your First Home is due to open for pre-registration by the end of December 2026, with applications opening in February 2027 and the first loans expected to be issued from April 2027.
Your First Home scheme enables first-time buyers to get a mortgage on a new-build home with a 2.5% deposit. The government will provide an equity loan worth 20% of the purchase price, which is interest-free for the first five years.
Shared Ownership vs Your First Home: which is better?
The Shared Ownership and Your First Home schemes are designed for different types of buyers, providing options for a wider section of the buying market.
Broadly speaking, Your First Home is targeted at first-time buyers who meet financial criteria to afford a mortgage on a home but can’t put down a larger deposit. Shared Ownership, on the other hand, is open to all so long as you meet the eligibility requirements.
We’ve compared the two approaches side by side to help you understand how they work, what you may need upfront and the key differences between them.
| Shared Ownership | Your First Home | |
| How it works | Eligible buyers can purchase a share of a home (usually 25% to 75%, although shares from 10% are available on some homes) depending on what they can afford. Their deposit is calculated based on the share that they are purchasing. They will then pay rent on the remaining share. | Eligible first-time buyers purchase a new build home with a 2.5% deposit, backed by a 20% government equity loan. |
| What problem does it solve? | Helps make both the upfront cost and ongoing monthly cost of home ownership more manageable. | Primarily helps first-time buyers overcome the deposit barrier. |
| Who can benefit? | This scheme is available to all eligible buyers who: Have a gross household income of no more than £90,000 (London) or £80,000 (UK) Are unable to purchase a suitable home to meet their housing needs on the open market Don’t already own a home or they will have sold their current home before their purchase Note: from 2027, the Shared Ownership household income caps are due to increase to £90,000 nationally and £110,000 in London. | This scheme is primarily designed for and targeted at buyers who have the income to afford a property but lack the savings and deposit. Buyers who have a total annual household income of £110,000 or less outside London, or £140,000 or less within London |
| Deposit | Usually 5% to 10% of the share purchased. | Minimum 2.5% of the purchase price. |
| Property share | Up to 75% with option to ‘staircase’ and buy more shares later up to 100%, | 100% |
| Equity Loan | None | 20% Interest rate: Years 1 to 5 = 0% Year 6 = 1.5% From year 7 = 3% If and when you come to sell your home, the Government loan can increase or decrease in line with the value of your home. |
| Mortgage | Initial share | Remaining 77.5% |
| Example: | On a £300,000 new‑build: Mortgage share: £75,000 (25%) Deposit: £3,750 (5%) Rental share: £225,000 (75%) Monthly rental: £687.50 Monthly mortgage*: £403 Total monthly**: £1,090.50 *based on a 30-year term at 5% **excludes any monthly service charge which is dependent on the home/area | On a £300,000 new‑build: Deposit: £7,500 (2.5%) Equity loan: £60,000 (20%) Mortgage: £232,500 (77.5%) Monthly mortgage*: £1,248 Total monthly** year 1 to 5: £1,248 Total monthly** year 6: £1,323 Total monthly** from year 7: £1,398 *based on a 30-year term at 5% ***excludes any monthly service charge which is dependent on the home/area |
| Who | Anyone who meets the affordability and eligibility criteria. | First Time Buyers |
| Property type | Mostly New Builds but also available on resale properties. Available through a registered housing provider. | New Builds in England within local authority price caps. Where the housing developer has opted into the scheme. |
| Income cap | £80,000 nationally £90,000 in London From 2027: £90,000 nationally £110,000 in London | £110,000 nationally £140,000 in London |
Can I use Your First Home with Shared Ownership?
You can’t use Your First Home to purchase a Shared Ownership home.
Shared Ownership already offers low deposits on a share of the overall property. Our Affordability Calculator can provide a better sense of initial deposit amounts and total monthly repayments to show you what is affordable.
Where are Your First Home schemes available to buy?
Developers will need to sign up to the scheme so, at this stage it is still unclear which developers are part of the Your First Home scheme.
L&G currently has Shared Ownership scheme available to buy now across the country.