FIRST-time buyers in Bude could be set to benefit from a new lower deposit scheme according to one regional housebuilder.

Cavanna Homes has stressed that prospective buyers in the town could be able to purchase a home with a deposit of just 2.5 per cent, providing a major boost to those with home-owning aspirations.

It comes after the government detailed plans for its new £4.7-billion Your First Home scheme in its Autumn Budget announcements on Wednesday, October 28. The scheme will offer eligible first-time buyers access to a government-backed equity loan worth 20 per cent of the purchase price, interest-free for the first five years.

The housebuilder has said that with a local property price cap of £310,000 confirmed for the area, someone purchasing a qualifying home at this price could need a deposit of just £7,750, compared with £15,500 for a conventional 95 per cent mortgage. The government’s 20 per cent equity loan would contribute a further £62,000 towards the purchase, significantly reducing the size of the mortgage required.

With applications expected to open in February 2027 and the first sales anticipated from April, Cavanna Homes has suggested that the scheme could help thousands of people take their first step onto the property ladder.

Under the scheme, eligible first-time buyers will be able to purchase qualifying new-build properties, subject to household income limits and local property price caps.

The government has confirmed a household income threshold of £110,000 outside London, with local property price caps now announced. Housebuilders will need to apply to participate in the scheme, with details of qualifying properties to be confirmed.

The equity loan will remain interest-free for the first five years, with interest payable from year six. The amount repayable will be linked to the property's value.

Hannah Newnes, sales and marketing director at Cavanna Homes, has welcomed the announcement, highlighting the difference a smaller deposit could make to buyers struggling to save while renting.

She 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.”

However, with some details yet to be ironed out, Hannah suggests that the true impact of the scheme cannot yet be predicted.

She continued: "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."