A man and a woman have appeared in court after residents awoke in the middle of the night to find their home broken into and on fire.

Officers from the Central West Police District attended Want Street in Parkes about 1am on Friday following reports of a break and enter.

They were told the occupants of the home woke to the sound of their smoke alarm and found part of their home covered in smoke.

Upon reviewing their CCTV footage, the occupants discovered they had been broken into, a NSW Police media statement issued to media said.

The fire was extinguished by NSW Fire and Rescue firefighters.

Police reviewed the CCTV footage and established a crime scene which was forensically examined.

It's alleged the two individuals attempted to break into one car but were unsuccessful, and broke into a second vehicle.

Officers found the man and woman allegedly depicted in the CCTV a short time later in Moor Street, Parkes while they were conducting patrols.

A 22-year-old man and an 18-year-old woman were arrested and taken to Parkes Police Station.

The man was charged with:

• Aggravated break and enter dwelling etc in company damage property less than $60,000.

• Destroy etc property in company use fire etc more than $5000.

• Enter vehicle or boat without consent of owner/occupier.

• Goods in personal custody suspected being stolen (not motor vehicle).

The woman was charged with:

• Aggravated break and enter dwelling etc in company damage property less than $60,000.

• Destroy etc property in company use fire etc more than $5000.

• Enter vehicle or boat without consent of owner/occupier.

• Possess ammunition without holding licence/permit/authority.

Police will allege in court the man and woman stole the car keys to the occupant’s car from the home before breaking into the vehicle.

They were both bail refused before reappearing in Bail Division Court 4 on Saturday.