In an update from Newcastle Building Society, three quarters of applications to the mutual under the scheme have been from first-time buyers.
The average property sale price is £288,000 through the scheme, which is more than the Help to Buy cap in many regions.
Under the Help to Buy Scheme, there are regional caps set at 1.5 times the current forecast regional average. This is above £288,000 in the East of England, London, South East and South West.
The average deposit for borrowers using the scheme is £15,000.
According to research from Barclays earlier this year, the average solo first-time buyer deposit was £61,100.
The lender added that the number of developers had grown to 21, and eligible sites were now all over the country resulting in “consistent interest” from customers as well as brokers.
The mutual added that research from Savills showed Deposit Unlock could help fill the gap left by Help to Buy, which ends in March next year, with 24,251 completions over the next three years.
Stuart Miller, chief customer officer at Newcastle Building Society, said “Any rise in house prices makes it increasingly difficult for first-time buyers and low deposit borrowers. Whilst the rate of house price inflation appears to have slowed, the cost-of-living squeeze and wider economic uncertainty means it’s now harder than ever to save for a deposit.
“Help to Buy has assisted thousands of prospective homeowners over the past 10 years but as it comes to an end, we need to fill the gap that it leaves behind. That’s why innovative schemes like Deposit Unlock are so important.”
He explained that Deposit Unlock was industry-led, rather than dependent on government or taxpayer funding, and it was straightforward for homebuyers as it was 95 per cent loan to value (LTV) on new-build homes.
Miller continued: “It’s rewarding to know that since we helped launch Deposit Unlock nationally last year, we’ve already helped so many people achieve their dream of home ownership, and that initiatives like Deposit Unlock will become even more critical for home buyers in a challenging market.”
Deposit Unlock was developed by the Home Builders Federation (HBF), lenders and builders and is an insurance-backed scheme managed by reinsurance broker Gallagher Re.
Newcastle Building Society was the first lender to partner with the initiative and launched products in June last year.
The mutual completed its first Deposit Unlock scheme purchases and expanded its range.
Nationwide and Accord Mortgages have also joined the scheme.
