The scheme, which launched earlier this year, allows new build buyers to purchase property with a five per cent deposit. It was developed by Home Builders Federation (HBF) and global reinsurance broker Gallagher Re.
It will now be available on developments across England, Scotland and Wales and is open to HBF and Homes for Scotland members.
Nationwide will offer a product for first-time buyers and second steppers up to £750,000. Borrowers using Deposit Unlock will be able to access the society’s 95 per cent LTV mortgages, which start from 2.62 per cent.
Around 17 builders are signed up to the scheme, including Barratt, Bellway, Bewley, Bloor Homes, Countryside Properties, Crest Nicholson, Croudace, Davidson Group, Fairview, Hill, Keepmoat, Miller, Persimmon, Redrow, Taylor Wimpey, Thakeham and Vistry. More builders will be added in the coming weeks.
Newcastle Building Society, which was the first lender to sign up to the scheme and offer the product nationally following a successful regional trail in the north-east, has also had the first completions under the scheme.
More lenders are expected to join in the new year, according to Deposit Unlock.
The scheme will open up the new build market to more borrowers who cannot use the Bank of Mum and Dad and will soften the blow of the withdrawal of the Help to Buy equity loan scheme.
Stewart Baseley, executive chairman of HBF, said: “The industry has worked hard to develop a sustainable solution that will help more prospective buyers onto the housing ladder, maintain demand and so enable builders deliver more desperately needed homes.
“Help to Buy has played a significant role in supporting increases in housing supply in recent years and has turned home ownership dreams into reality for hundreds of thousands of households. However, with the new Help to Buy scheme now less accessible in some regional markets including many parts of northern England, and with the programme closing in 2023 a new option was required.”
He added that the launch was “testament to the foresight and investment” made by 17 of its members.
He said: “We are also grateful for the commitment shown by our two launch lender partners and look forward to welcoming others in the coming months.”
Andy Dean, head of new build at Nationwide Building Society, said: “Raising a deposit continues to remain one of the biggest challenges facing those looking to move into their first home or on to their next. That is why we are pleased to be supporting Deposit Unlock and it’s great to see that it is now being rolled out nationally, providing a real boost to the new build sector.
“Supply of new housing also remains key to supporting first-time buyers and second steppers. Given the current strong appetite for new build properties, the Deposit Unlock scheme is particularly timely, especially given the forthcoming end of the Help to Buy Equity Loan scheme.”
Stuart Miller, chief customer officer at Newcastle Building Society, said: “Deposit Unlock is a true innovation and great example of collaboration across the industry to help more people achieve the dream of home ownership.
“That ambition is now paying dividends as we’re seeing the first completions and I take a real sense of pride in the fact that families are now living in homes purchased through Deposit Unlock. Helping more people get on and up the property ladder is a key element of our purpose so I’m delighted that we were the trailblazers for this scheme.”
