Deposit Unlock

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What is the Deposit Unlock scheme?

Deposit Unlock: Overview

Developed by the Home Builders Federation (the body which represents housing developers) along with reinsurance firm Gallagher Re, Deposit Unlock allows eligible buyers to purchase a new build home with a 5% deposit.

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 15-25%. However, with the new Deposit Unlock scheme, buyers are able to put down a 5% deposit with the house builder paying to insure the mortgage instead, with an aim to make lenders more comfortable about offering high Loan-to-Value (LTV) mortgages on new homes.

The maximum loan you can currently take out to buy a property through this scheme is £750,000, although this can vary from lender to lender and will depend on your financial circumstances.

Deposit Unlock: Participating Builders & 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 Nationwide Building Society, Newcastle Building Society and Accord Mortgages.

Correct as of June 2023, the various participating home builders are outlined below:

Anderson Design & BuildCampion Homes LimitedHillWheeldon Brothers
Anderson O&UCity & Country HomesIlke HomesPentland Homes Limited
Ashberry HomesCountryside PropertiesKeepmoat HomesPersimmon
Ashwood HomesCrest NicholsonKitewood Estates LimitedProspect Homes
Baker Estates LimitedCroudace HomesLinden HomesRedrow
Barratt HomesDavidson GroupMandale HomesSt Modwen Homes
Barratt LondonDavid Wilson HomesMCIStonebond Group
Beal Developments LimitedDevine HomesMiller HomesStonebridge Homes
Bellway HomesEdenstoneMJ Gleeson PLCTaylor Wimpey
Bellway LondonHoldingsMorris HomesThakeham
BewleyEdwards HomesMorrish HomesThomas Homes
Bloor HomesFairviewNicholas King HomesVistry Group
Bovis HomesFortitudo LimitedNorfolk HomesWeston Homes PLC
Braidwater LimitedGleeson Build & Develop LimitedPat Munro HomesWheeldon Brothers
CALA Homes LimitedHayfield HomesPearce Fine Homes

Deposit Unlock: Eligibility

To be eligible for Deposit Unlock, you must meet certain criteria:

  • You must be buying a new build property.
  • The loan you require must not exceed £750,000.
  • You can only buy a home from participating house builders and lenders (see above).
  • You must not already own another home at the time of completion.

To find out more about other home-buying and rental options, visit our article index, or check out our helpful FAQs and guides. Alternatively, you can start your search for a new home on Share to Buy’s property portal today!