Deposit Unlock mortgages launched nationally

Deposit Unlock, the housebuilding industry-led mortgage scheme that allows new build buyers to purchase with a 5% deposit, today launches nationally with 17 major builders.

Nationwide is the latest major lender signed up to Deposit Unlock and will offer the product on new build properties for both first-time buyers and second steppers up to £750,000. Newcastle Building Society, which was the first lender to offer Deposit Unlock nationally following a successful trial in the north east, has recently seen the first completions under the scheme. More lenders are expected to join in the new year.

Deposit Unlock is designed to help open up the new build market to more borrowers who do not have access to large deposits or the “Bank of Mum and Dad” and help soften the blow of the withdrawal of the Help to Buy equity loan scheme.

The mortgage indemnity scheme has been developed by the Home Builders Federation and 17 of its largest members, alongside Homes for Scotland and Deposit Unlock’s scheme manager Gallagher Re. It will be available on developments across England, Scotland and Wales and is open to all HBF and HfS members. More builders will be added in the coming weeks. …