We’ve signed up to the Deposit Unlock initiative created in partnership with reinsurance broker Gallagher Re, mortgage lenders and fellow members of the Home Builders Federation.
The scheme will be available to both first-time buyers and second steppers, allowing them to purchase a new-build property priced up to £750,000 with just a 5% deposit, enabling borrowers with smaller deposits to access more competitive mortgage products.
After an initial pilot, the scheme is now being rolled out across the country, with Nationwide and Newcastle Building Society the first major lenders to sign up to the initiative.
It will act as an alternative to Help to Buy which is currently scheduled to close in March 2023 and is essentially a new-build version of the existing mortgage guarantee scheme.
For example, at our Colindale Gardens development in North West London, this means customers will be able to purchase a two-bed balcony apartment priced at £515,000 with a 5% deposit amount under £26,000.
James Holmear, Group Sales Director, said: “The only way to address the UK’s chronic housing shortage is to build more new homes, as well as ensuring potential buyers are supported by both industry and government initiatives.
“This new scheme provides potential buyers with competitively priced mortgage products that make the dream of buying a new home more affordable and, as the name suggests, unlocks a significant part of the market.
“The housebuilding community have worked together to fund the insurance indemnities that have created an innovative and sustainable solution to a long-term issue.”
