The scheme is now available on homes of almost 50 major and SME home builder brands, with an increasing number set to join the list. The companies include household names such as Barratt Homes, Bovis and Taylor Wimpey.
The update comes on the back of research launched as part of New Homes Week – 27 February to 3 March – which found 18 per cent of people felt the top issue preventing them from buying a house was uncertainty over whether they would be able to secure a mortgage.
An answer to the end of Help to Buy
The scheme was launched in 2021, developed by the HBF and around 17 major housebuilders in partnership with reinsurance broker Gallagher Re.
The scheme now has three lenders, Nationwide, Newcastle Building Society and Accord Mortgages.
It was launched in response to the ending of Help to Buy in England and aims to support more buyers get onto or move up the housing ladder by making homeownership more affordable.
Deposit Unlock works by offering participating mortgage lenders protection on mortgage products so they can lend to consumers at 95 per cent.
This means first time buyers and existing homeowners can use Deposit Unlock to purchase a new-build home worth up to £833,000 with a five per cent deposit and a competitively priced mortgage product.
Deposit Unlock: ‘Support for families to achieve home ownership’
David O’Leary, Executive Director at HBF said: “Through Deposit Unlock homebuilders are making a significant investment in supporting people to access competitive mortgage products that’d otherwise be unattainable.
“The scheme began with one lender and 17 home builders. It has now extended across a range of mortgage lenders and HBF members nationally.
“Importantly, against a challenging financial backdrop, it’s providing much needed support to enable more families to achieve homeownership.”
Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, said: “Deposit Unlock is a great example of cross-industry collaboration for social good. It has seen homebuilders, lenders and insurers come together to create and deliver a long-term, sustainable scheme that will allow more people to realise their dream of homeownership.
“Even in today’s tough financial environment, competitively-priced low-deposit mortgage products for new build homes, with all their energy performance benefits, are now more available throughout the UK thanks to the scheme. And, as we seek to maximise choice for home buyers, it’s fantastic to see the number of house builders and lenders active under Deposit Unlock growing daily.”
At the beginning of February, Mortgage Solutions reported that the HBF had brought out a dedicated website for Deposit Unlock, which allows homebuyers to buy new build flats and houses with low deposit mortgages.
