Deposit Unlock, which was developed by Gallagher Re in partnership with the Home Builders' Federation (HBF) and house builders, will help open up the newbuild market to more borrowers with a small deposit as - unlike the Help to Buy scheme - it is available to second steppers as well as first-time buyers. The scheme is designed to provide a 'much-needed' alternative for the newbuild market after the Help to Buy Equity Loan scheme for first-time buyers comes to an end in March 2023, and will be available on more than 1,000 new build sites across England, Scotland and Wales.
The scheme is available through mortgage brokers on standard new build loans of between £25,000 and £750,000. Borrowers using Deposit Unlock will have access to the Society’s range of 95% LTV mortgages, currently starting from 2.89%, which they can use to buy a house or flat.
Henry Jordan, Director of Mortgages at Nationwide Building Society, said:
“The need for more new homes has never been more apparent and we are keen to support the Deposit Unlock scheme – giving those with smaller deposits further hope that they can get a home of their own. The scheme will be a long-term alternative to the Help to Buy Equity Loan scheme, which is due to end in around 18 months’ time."
Neil Jefferson, Managing Director at the Home Builders Federation, said:
“We’re delighted to be working with Nationwide to make Deposit Unlock available to homebuyers all over the country. Home builders have stepped up and developed a privately-funded product in Deposit Unlock which will provide buyers with a route to home ownership, including for first-time buyers without vast deposits. Nationwide’s involvement demonstrates a very welcome commitment not only to their customers but also to the new homes market, helping us to tackle our long-term housing affordability crisis.
“With the new Help to Buy scheme reducing access to high loan-to-value mortgages in some regions and with the scheme winding down from the middle of next year, Deposit Unlock will help households onto the housing ladder and give developers confidence to invest in new land and labour to build on the massive housing supply increases of recent years.”
