The Deposit Unlock scheme, which was launched in 2021, allows customers to buy a new build home from a participating home builder with a five per cent deposit, using a mortgage from a participating lender.
Teaming up with Gallagher Re and the Home Builders Federation (HBF) the firm will be the first complex credit lender to offer 95 per loan to value (LTV) new build mortgages.
This will open up the scheme to first-time buyers who cannot secure finance through mainstream lenders.
Other lenders include Accord Mortgages, Nationwide Building Society and Newcastle Building Society.
The lender will launch a product early next year and it will aim to support “disenfranchised first-time buyers currently unable to get onto the property ladder following the withdrawal of Help-to-Buy”.
‘Bluestone Mortgages is a fantastic new addition to the Deposit Unlock scheme’
Reece Beddall (pictured), sales and marketing director, Bluestone Mortgages, said: “Following the end of the Help to Buy scheme, those with smaller deposits are finding it increasingly challenging to get onto the property ladder as the increased cost of living limits their power to save or a deposit.
“With this in mind, we’re focused on innovating to find new solutions to help would-be borrowers with lower deposits achieve their homeownership goals. This partnership demonstrates our commitment to supporting disenfranchised first-time buyers with complex credit, as well as helping housebuilders find customers for their properties.”
Freddie Scarratt, head of UK mortgage at Gallagher Re, added: “Bluestone Mortgages is a fantastic new addition to the Deposit Unlock scheme, as they broaden the potential customer base for the scheme’s house builders.
“Heading into 2024, consumers need more choice, and Deposit Unlock is delivering that with a new lender and a unique product. With over 75 developers now signed up, and with an increasing choice of lenders on board, Deposit Unlock is going from strength to strength, providing a positive impact for all stakeholders. We look forward to welcoming Bluestone Mortgages onboard in the New Year.”
David O’Leary, executive director at HBF, said: “Ensuring people can buy a new build home is key to the industry’s ability to deliver desperately needed new homes. Too many people are unable to realise their ambition of home ownership because they simply can’t afford the deposit required.
“The industry has worked with lenders to develop a sustainable solution that will help more prospective buyers onto the housing ladder, maintain demand and so enable builders to build. The addition of Bluestone will increase the availability and awareness of Deposit Unlock and so help more people realise their ambition of owning a high quality, energy efficient new build home.”
