Deposit Unlock: What is it?

How can the Deposit Unlock scheme help me buy a home?

What is Deposit Unlock?

Deposit Unlock is an innovative home–buying scheme designed to help aspiring homeowners overcome the financial barrier of saving for a large deposit. Launched by the Home Builders Federation (the body which represents housing developers) in partnership with mortgage lenders and managed by Gallagher Re., the scheme enables buyers to purchase a new-build home with just a 5% deposit.

Unlike some other affordable housing schemes, Deposit Unlock is not just a first time buyer scheme but is also available to previous and existing homeowners looking to move, making it a versatile option for a wide range of buyers. This initiative aims to make homeownership more accessible, particularly in areas where saving for a higher deposit may be challenging.

How does Deposit Unlock work?

The scheme allows buyers to secure a new-build property with a 5% deposit while participating homebuilders provide an insurance-backed guarantee to lenders. This arrangement reduces risk for the lender and enables them to offer competitive mortgage rates, making the home-buying process more affordable. In order to protect themselves from the devaluation of brand-new properties, mortgage lenders are often stricter on the amount they are willing to lend on new-build homes, often setting minimum required deposits of 15% to 25%.

Deposit Unlock is available on selected developments across the UK, and buyers can choose from a wide range of high-quality, energy-efficient new-build properties. The main steps in the process include:

• Finding a home from a participating developer.
• Applying for a mortgage with a participating lender.
• Securing your property with a smaller deposit than traditional requirements.

Deposit Unlock: Participating builders and lenders

As part of Deposit Unlock’s eligibility criteria, you can only buy from participating home builders and mortgage lenders. As of November 2022, participating deposit unlock mortgage lenders are Accord Mortgages, Bluestone Mortgages, Nationwide Building Society and Perenna.

Correct as of Correct as of 8 November 2022, the various participating home builders are outlined below:

How can I find a Deposit Unlock home?

Ready to explore your options with Deposit Unlock? Use our property search tool to discover available new-build homes from participating developers. You can also learn more about the scheme, including detailed eligibility requirements and a breakdown of the associated costs and affordability right here on Share to Buy.