If you have a case in mind, but want to find out more, we’ve answered some frequently asked questions about our First Homes mortgage below.
Last updated 22 July 2022.
The Government’s First Homes Scheme (Section 106) provides discounted homes to eligible first-time buyers and key workers who otherwise wouldn’t be able to afford one.
Under the scheme, purchasers will be able to buy a property with a discount of at least 30% off the market price. The purchase must be funded by a mortgage of at least 50% of the discounted purchase price.
Clients can buy a First Home if their household earns £80,000 a year or less (£90,000 a year or less in London) and fit one of the following eligibility criteria:
The buying process for First Homes properties is largely the same as purchasing any other property, with just a few differences…
Your client would first view the property, which must be registered as an available property with the First Homes Scheme. Next, they would check they meet the First Homes national and local criteria, and if they do, they can reserve their home with the builder and pay a deposit (maximum £500).
A First Homes application can then be submitted to the Local Authority who will consider the application and issue an Authority to Proceed and Eligibility Certificate.
Once an Authority to Proceed has been issued, you can apply to a mortgage lender who offers First Homes mortgages.
A First Homes restriction on the future resale will be registered on the title of the property by the conveyancer acting. This means your client can only sell in the future to another qualifying First Homes buyer at the same discount to the market value, ensuring the First Home continues to benefit others when your client moves on.
If you’d like to submit an Agreement in Principle and application on behalf of your client, we’ve covered the steps on our Apply page, so you know what to expect.
You can find our range of available products on our product portfolio, available to download on our First Homes product page.
Please note, you can only submit an application once your client has received their Authority to Proceed, which we will require sight of once the application has been submitted. This does not stop you from obtaining an Agreement in Principle.
We’ll lend up to 75% LTV (95% LTV of the discounted market price) to those looking to purchase a new home under the First Homes Scheme on a repayment only basis.
Currently, the maximum loan available is £237,500 (£399,000 London), which is based on the current scheme’s criteria. This loan amount will be reviewed once there is an active re-mortgage or second hand market.
For further product details, please visit our First Homes product page.
A minimum 5% of the discounted market value must be available as a deposit. The deposit can be the applicants’ own or gifted from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild). Evidence of the source of deposit is required.
We require a minimum income requirement of £17,500 per First Homes mortgage application. We also have a maximum joint income of £80,000 (London = £90,000).
The minimum property value is £100,000 or product dependent. We also have a maximum property value of £357,000 or £600,000 for London.
We will not consider remortgage applications. A list of acceptable reasons for additional borrowing can be found on our First Homes criteria page.
The minimum age for a First Homes mortgage is 21. The loan must be repaid before your client’s state retirement age or their stated intended retirement age, whichever is lower. Further details regarding your client’s state retirement age can be found on our First Homes criteria page.
You can download a copy of our documentation checklist from our Downloads page which lists all the requirements for First Homes mortgage applications.
Yes, if you’d like to check your client’s affordability for a First Homes mortgage, please use our Residential calculator which can be downloaded on our Affordability calculators page.
Yes, you can submit an application using Intermediary Online.
You’ll need to register to use the platform, but you’ll be able to create and edit applications, upload documentation and receive notifications at each stage of the process.
When submitting a First Homes application, please specify the price your client is paying for the property in the 'purchase price' box and confirm the local discount details within the additional information section.
Yes, you can download our mortgage application forms on our Downloads page; however, if possible we would prefer you to submit your application online.
We can accept applications and supporting documents via email in the first instance at email@example.com but the original application form will need to be posted to our Principal Office address; Marsden Building Society, Principal Office, 6-20 Russell Street, Nelson, Lancashire BB9 7NJ.
No, there is no need to pre-register if you’re applying via paper application, we will use the information provided when you submit your first application with us.
If you want to submit your application online, you will need to register for our Intermediary Online service.
Sign up to our newsletter for the latest product updates and news from the Marsden. For more information about how we protect your data, please visit our Privacy page.