95% mortgage scheme for new builds launched

Newcastle Building Society will later this month become the first lender to offer 95% LTV mortgages to buyers of new build homes under a new mortgage indemnity scheme developed with the Home Builders Federation and its members.

The new scheme is called Deposit Unlock and is designed to help more low deposit borrowers secure a new build home with a deposit of just 5%. The scheme will provide low deposit buyers with an alternative to both the recently launched government mortgage guarantee scheme and the Help to Buy scheme, which will end in 2023. Initially it will only be available in the north east of England, involving Barratt, Bellway, Keepmoat and Vistry, but is expected to roll out nationally with other lenders and builders in the coming months.

HBF and a total of 17 housebuilders have teamed up with insurer Gallagher Re to create the Deposit Unlock mortgage indemnity scheme.

Stuart Miller, customer director at Newcastle Building Society, said: “Key to our purpose as a regional building society is to help more people get on and up the property ladder – especially those without access to the bank of mum and dad.

“Being the first lender to adopt the scheme means …