For the use of mortgage intermediaries & other professionals only

First Homes scheme

Halifax Intermediaries is supporting the Government First Homes scheme in England. First Homes allows First Time Buyers (FTB) to purchase a New Build property at a discounted purchase price under a Resale Price Covenant (RPC). The discount (which will be a minimum 30%) must be passed on if the property is sold in the future.

Key eligibility criteria for First Homes scheme:

  • All applicants must be a First Time Buyer. Local Authorities may prioritise key workers, local residents and service personnel
  • In England only
  • New Build properties only
  • Maximum purchase price, after discount, is £250,000 (£420,000 in London)
  • Discount typically 30% but Local Authorities can increase up to 50%
  • Customer maximum income of £80,000 (£90,000 in London).

Mortgage criteria:

  • Minimum 5% personal deposit based on discounted purchase price.
  • First Homes scheme specific products must be selected (for remortgages Affordable Housing remortgage range applies).
  • Mortgage must be on a capital and interest repayment basis, no interest only.
  • Minimum 50% Loan to Value (LTV) based on discounted purchased price.


  • Full market valuation = £100,000
  • Discount of 30% (but could be higher) = £30,000
  • Discounted purchase price = £70,000
  • Customer deposit required = £3,500 (5% of £70,000)
  • Maximum Loan = £66,500

A 5% personal deposit is required in addition to any incentives from the builder. The loan amount together with any incentives and any product fee being added, cannot exceed 95% of the discounted purchase price. For product selection the percentage LTV used will be loan amount against the full market value (not discounted purchase price).

On Halifax Intermediaries Online the 'First Homes' scheme should be selected on the Scheme screen and you will then be asked to key the percentage discount. On the Loan screen key the discounted purchase price.

The customer should obtain an Authority to Proceed (ATP) from the Local Authority. A Decision In Principle (DIP) can be keyed before ATP has been obtained by selecting the new scheme and a full application should only be submitted after ATP has been granted.

A Special Condition on the mortgage offer will state that an RPC will apply to the property. Affordable Housing Scheme Guidance Notes will be issued automatically to the conveyancer with the offer.


Remortgages of properties initially purchased under the First Homes scheme are accepted. Please select the First Homes scheme and key the percentage (%) discount applied when the property was originally purchased. On the Loan screen key the estimated property value after the percentage discount is applied e.g. if the estimated full market value is £250,000 and a 40% discount applied when the property was initially purchased key £150,000 as the estimated property value.

Products should be selected from the Affordable Housing Remortgage range; the loan to value (LTV) for selecting the product is the loan amount against the full market value. 

Product transfer (PT) and further advance (FA) applications

Please see the Product Finder within Mortgage Enquiry for the available products. The loan to value (LTV) for product selection will be the loan amount against the full value of the property. Further advance applications are not available until a mortgage has been open for 6 months. The maximum 85% LTV for FA applications is based on the loan amount against the property valuation after the percentage discount is applied.

We continue to accept RPC schemes which are not part of the First Homes initiative. Please see Resale Price Covenant (RPC) criteria.