The £7,750 deposit that could get Bude first-time buyers a home

If you’re renting in Bude and the deposit has always been the thing standing between you and a front door of your own, the sums have just shifted.

First-time buyers in Bude could get onto the property ladder with a deposit of £7,750, after the Government confirmed a £310,000 local property price cap for the area under its new Your First Home scheme.

The £4.7 billion scheme, detailed as part of the Autumn Budget announcements last Wednesday (28 October), lets eligible buyers purchase a qualifying new-build home with a deposit of 2.5 per cent. A Government-backed equity loan worth 20 per cent of the purchase price then covers a large chunk of the rest, interest-free for the first five years.

How the numbers work in Bude

Take a qualifying home priced at the £310,000 cap. A 2.5 per cent deposit comes to £7,750. Buying the same home with a conventional 95 per cent mortgage would mean finding £15,500 up front.

The Government’s 20 per cent equity loan would put a further £62,000 towards the purchase. That leaves a mortgage of around £240,250, compared with £294,500 on a standard 95 per cent mortgage.

Who can use the scheme

The scheme is open to eligible first-time buyers purchasing qualifying new-build properties, subject to household income limits and local property price caps.

• You need to be a first-time buyer.
• The home must be a qualifying new-build.
• Household income must be no more than £110,000 outside London.
• The price must fall within the local cap, which is £310,000 in Bude.

How the equity loan is paid back

The equity loan stays interest-free for the first five years, with interest payable from year six.

The amount you repay is linked to the property’s value, so it moves with what the home is worth rather than being a fixed figure.

What the local housebuilder says

Cavanna Homes, which is building at Bellevue in Bude, has welcomed the announcement. The firm has been building homes across Devon, Cornwall and Somerset for more than a century, and says a smaller deposit could make a real difference to buyers struggling to save while renting.

Hannah Newnes, Sales and Marketing Director at Cavanna Homes, said: “This is a really significant announcement for first-time buyers, particularly here in the South West, where getting onto the property ladder can feel increasingly difficult.

“The biggest hurdle for many buyers isn’t necessarily the monthly mortgage payment, but finding the money for a deposit in the first place. Reducing that requirement to just 2.5 per cent could make homeownership a reality for people who previously thought it was years away.

“We know how much buying a first home means to people, and anything that helps make that milestone more achievable is incredibly welcome.”

Hannah added: “Of course, the success of the scheme will depend on how it works in practice, but this is a positive step towards giving more people the opportunity to own a home of their own.”

When you can apply

Applications are expected to open in February 2027, with the first sales anticipated from April. The scheme could help thousands of people take their first step onto the property ladder.

More information is on the Cavanna Homes Your First Home page.

Housebuilders will need to apply to take part in the scheme, and details of which properties qualify are still to be confirmed.

📷A Cavanna Homes new-build home. Credit: Cavanna Homes