First Homes & Discount Market Sale Calculator
Enter the full market value and the discount to see what you would pay, the loan you need and whether it meets the scheme rules. Loan-to-value is shown on the discounted price and on the market value, because lenders use both.
England only. Information, not advice.
Discounted price
£210,000
£90,000 (30%) off a £300,000 market value
- Loan needed
- £199,500
- Deposit
- £10,500
First Homes checks
Meets the rule: Price cap: £250,000
£210,000 after the discount is within the cap. The cap applies to the first sale only.
Meets the rule: Income cap: £80,000
Income of £40,000 is within the cap. Councils can set a lower cap for the first 3 months of marketing.
Meets the rule: First-time buyers only
Every buyer must be a first-time buyer.
Meets the rule: Mortgage of at least 50% of the price
A £199,500 loan meets the £105,000 minimum.
Loan-to-value: two ways to measure it
LTV on discounted price
95%
£199,500 of £210,000
LTV on market value
66.5%
£199,500 of £300,000
Lenders don't all measure these homes the same way. Nationwide and Skipton lend up to 95% of the discounted price. Halifax also lends up to 95% of the discounted price but sets your rate from the LTV on full market value, which can put you in a cheaper rate band. The same loan can therefore sit in a different band at different lenders.
| 25 years | 30 years | 35 years |
|---|---|---|
| £1,166 | £1,071 | £1,007 |
5% is an illustrative rate, not a quote. Your rate depends on the lender, your LTV band and the product.
Could your income cover the loan?
6 of 15 lenders in our table would lend £199,500 or more on an income of £40,000 (range £179,600 to £240,000).
From each lender's published income multiple for a straightforward employed case with no other debts. Your outgoings, credit history and the lender's own affordability model can lower it.
Lenders whose criteria accept First Homes
- Chorley BSup to 95%
- Halifaxup to 95%
- Loughborough BSup to 95%
- Mansfield BSup to 95%
- Nationwideup to 95%
- Pepperup to 95%
- Skiptonup to 95%
- Atom Bankmax LTV not recorded
- Cumberland BSmax LTV not recorded
- Furness BSmax LTV not recorded
Not shown: 2 lenders that accept the scheme but have a recorded maximum LTV below your 95%.
Filtered on the LTV on the discounted price. Few lenders publish a maximum LTV for these schemes, and not all say whether it is measured on the discounted price or the market value, so check the basis before relying on it. Criteria last verified 23 September 2026.
Free, no credit search. We carry over the £210,000 discounted price as the purchase price and your £199,500 loan and your income.
Information only, not advice or a mortgage offer. Scheme rules as published by gov.uk and councils; check the details of the home with the developer and your council.
How discounted homes work
Both schemes sell a new home below its market value, and the discount stays with the home: when you sell, you sell at the same percentage below the value at the time. You own the whole home, so there is no rent and no staircasing. First Homes are at least 30% off, for first-time buyers only, with national price and income caps. Discount market sale homes are at least 20% off, and the council sets who can buy.
A worked example. A £300,000 First Home at 30% off costs £210,000. With a £10,500 deposit, the loan is £199,500. That is 95% of the discounted price but 66.5% of the market value, and the lender you choose decides which figure sets your rate. At a representative 5% over 25 years it costs about £1,166 a month.
Read the full guides: First Homes scheme and discount market sale, including which lenders accept each and what happens when you sell. Weighing it up against a share of a home? Try the shared ownership mortgage calculator.
Frequently asked questions
How is the price of a First Home worked out?
Take the full market value and knock off the discount: at least 30%, or 40% or 50% where the council sets it. A £300,000 home at 30% off costs £210,000. After the discount the price must be no more than £250,000, or £420,000 in London. That cap applies to the first sale only, and the discount stays with the home when you sell.
What is the 50% mortgage rule?
For First Homes, your mortgage (or Sharia home purchase plan) must cover at least half of the discounted price, so cash buyers are not allowed. On a £210,000 First Home the loan must be at least £105,000, which means the most deposit you can put in is £105,000. Discount market sale schemes are run by councils, and some set their own limit instead, such as a deposit of no more than 65% of the price.
Is the loan-to-value worked out on the discounted price or the market value?
It depends on the lender. Nationwide and Skipton lend up to 95% of the discounted price. Halifax also lends up to 95% of the discounted price but prices the mortgage on the LTV against full market value, so a £66,500 loan on a £100,000 home is priced at 67%. On discount market sale, Barclays lends up to 85% of the discounted price, or 80% of market value where there is a Section 106 agreement. The calculator shows both figures side by side.
What is the income limit for First Homes?
Household income must be no more than £80,000, or £90,000 in London. For joint buyers it is your combined income for the previous tax year, and all of you must be first-time buyers. For the first 3 months a home is marketed, a council can set a lower income cap or add local connection or key worker rules.
How is discount market sale different from First Homes?
First Homes is a national, standardised form of discount market sale: at least 30% off, national price and income caps, and first-time buyers only. Discount market sale homes are at least 20% below local market value, and the council sets who can buy, which can include income limits, local connection and whether you need to be a first-time buyer. In both, you own the whole home, pay no rent and the discount stays with the home when you sell.
Which lenders accept First Homes and discount market sale?
Of the 76 residential lenders we track, 12 say yes to First Homes and 14 say yes to discount market sale in their published criteria. Some refer cases for a decision, and NatWest and HSBC do not lend on homes with resale price restrictions. The calculator lists lenders whose recorded maximum LTV covers yours, and the full check tests each lender's own limits.
Does the calculator run a credit check?
No. It uses the figures you type, published scheme rules and lenders' published income multiples. Nothing is stored and there is no credit search. It is information to help you plan, not advice or a mortgage offer.
Found a home? See what lenders would lend
The free check runs your figures through each lender's own affordability rules, with the discounted price as the purchase price. No credit search.
Start a free checkRelated calculators
Shared ownership mortgage calculator
What lenders would lend on your share, with rent and service charge counted the way underwriters count them.
Stamp Duty Calculator
SDLT for England and Northern Ireland, including first-time-buyer relief.
How Much Deposit Do I Need?
The deposit staircase — how each extra 5% deposit changes your maximum property price, not just your rate.
How this calculator works, and when it was last checked
- Method
- The discounted price is the full market value less the discount. Your loan is that price less your deposit, and loan-to-value is shown against both the discounted price and the full market value because lenders use different bases. For First Homes it checks the price cap after discount, the household income cap and the rule that a mortgage must cover at least half the discounted price. Repayments use a representative rate, and the borrowing range uses each lender's published income multiple for a straightforward employed case.
- Rates last verified
- — First Homes discount, price cap, income cap, first-time-buyer and 50% minimum mortgage rules, and the discount market sale minimum discount, checked against gov.uk on 23 September 2026; lender acceptance taken from each lender's published criteria.
- Sources
- Who checked it
- Reviewed by Phillip Wakeling-Smith, CeMAP-qualified mortgage adviser.
Results are an estimate for general information, not a quote, an offer of credit, or advice. Your own figures depend on a lender's full assessment of your circumstances.
