For those aspiring to be homeowners but struggling to make a large deposit, there is now a potential solution. Deposit Unlock offers a mortgage scheme where home movers with an existing mortgage and first-time buyers can access 95% mortgages on new builds with just a 5% deposit.

This mortgage scheme offers first-time buyers a chance to own their dream home at an affordable price point. The scheme aims to encourage the purchase of new homes, making it easier for individuals to take their first step onto the property ladder. It is an exclusive option for new builds, so those looking for an existing property will have to look elsewhere.

The Deposit Unlock mortgage scheme offers a lower-risk option for mortgage lenders, protecting them from the loss they would incur if a buyer failed to keep up with their mortgage payments and if they defaulted. With traditional 95% Loan-to-Value mortgages becoming rare, this scheme offers a solution for potential homeowners who may not qualify for traditional mortgages.

You can only use this scheme if you are purchasing a property from a house builder that is registered and participating in the scheme. Your mortgage also has to be submitted with a participating mortgage lender.

Mortgage lenders

Currently, only a few lenders and many house builders are participating in the scheme, with more expected to follow. The mortgage works like a regular 95% Loan-to-Value mortgage from the buyer's perspective - simply supply a 5% deposit and take out a mortgage for the remaining amount. The homebuyer then pays off the mortgage monthly until both the amount borrowed and the accrued interest are paid off.

There are currently 3 mortgage lenders participating in the scheme which are:

• Accord Mortgages
• Newcastle Building Society
• Nationwide Building society

It is important to note that when purchasing a Deposit Unlock property, the buyer becomes the legal owner, with all the same rights and responsibilities as with any other property purchased with a mortgage. This differs from a shared ownership scheme where the buyer remains only a part-owner of the property and is liable to pay rent on the portion of the home they do not own.

Which builders are participating in the Deposit Unlock Scheme?

There is a long list of builders and developers who are already participating in this scheme such as:

• Anderson Design & Build
• Anderson O&U
• Ashberry Homes
• Baker Estates
• Barratt Homes
• Bellway Homes
• Bewley
• Bloor Homes
• Bovis Homes
• Braidwater Limited
• CALA Homes Limited
• City & Country Homes
• Countryside Properties
• Crest Nicholson
• Croudace Homes
• Davidson Group
• David Wilson Homes
• Devine Homes
• Edenstone Holdings
• Edwards Homes
• Fairview
• Gleeson Build & Develop Limited
• Hayfield Homes
• Hill
• Ilke Homes
• Keepmoat Homes
• Linden Homes
• Mandale Homes
• MCI
• Miller Homes
• MJ Gleeson PLC
• Morris Homes
• Morrish Homes
• Nicholas King Homes
• Norfolk Homes
• Pat Munro Homes
• Persimmon
• Prospect Homes
• Redrow
• St Modwen Homes
• Stonebond Group
• Stonebridge Homes
• Taylor Wimpey
• Thakeham
• Thomas Homes
• Vistry Group
• Weston Homes PLC

If you are looking to apply for the deposit unlock scheme and purchase a property from one of the developers named above, it may be worth enquiring about the scheme to see if you are eligible.

What are the benefits of using the deposit unlock scheme?

Deposit Unlock offers a chance for those on the cusp of the property ladder to take the leap and purchase their dream home. With the availability of low-deposit mortgages and the scheme's exclusive focus on new builds, many homebuyers can aspire to own a property they can truly call their own.

This is an appealing option for those seeking to take their first steps onto the property ladder with a minimum of a 5% deposit. It offers peace of mind that they legally and fully own the property. With more lenders expected to follow suit, Deposit Unlock is sure to have a positive impact on many aspiring homeowners.

If you are looking for a mortgage to purchase a new build property and would like more information on the deposit unlock scheme, contact us today at 0151 662 0188 or email [email protected].