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Newcastle BS completes on first Deposit Unlock scheme purchases

  • 17/11/2021
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Newcastle BS completes on first Deposit Unlock scheme purchases
Newcastle Building Society has announced the first completions in the UK under the innovative industry-led Deposit Unlock scheme.


The Deposit Unlock mortgage indemnity scheme was developed by the Homes Builders Federation and global reinsurance broker Gallagher Re to provide low deposit borrowers greater access to five per cent deposit mortgages on new-build properties.

The first purchases completed in November include a property in North Tyneside introduced by Midlands-based adviser New Homes Mortgage Services in Cannock.


Successful pilot leads to national roll out

After a successful regional pilot with selected developers, Newcastle Building Society led the national roll out of Deposit Unlock in September and a further expansion in the number of developers involved in the scheme is expected later this year.

Stuart Miller, chief customer officer at Newcastle Building Society, said: “We’re thrilled that the first completions under Deposit Unlock have taken place. They mark a significant milestone for all the parties involved who have worked so hard on the scheme since it was first conceived.

“The fact that families are now living in homes purchased through Deposit Unlock is cause for celebration and I’m so proud that we’ve been at the forefront of a truly innovative scheme to support low deposit borrowers achieve that dream of owning their own home.”

Maximum purchase price increase

In September, the lender enhanced its Deposit Unlock offering to reflect the national scope of the scheme by reducing rates and increasing the maximum purchase price for purchase from £330,000 to £600,000.

Anthony Dixon, mortgage and protection advisor at New Homes Mortgage Services in Cannock, said: “The Deposit Unlock scheme is going to be beneficial for many applicants because this helps them get on the ladder with a five per cent deposit, especially since the help to buy price caps have been introduced.

“Without this initiative, my clients would have needed to raise another five per cent to be able to purchase with this new build property so it was a great option for them.”

Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, said: “We are delighted Newcastle Building Society is now welcoming its first families into new build properties purchased under the scheme.

“Deposit Unlock is available to all UK mortgage lenders, and to all house builders, no matter what their size. So it’s ability to fill a critical funding gap, with government interventions like help to buy being phased out, and overcome a genuine social challenge many families face, is huge.”

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