An introduction to Deposit Unlock

Image of a front room. Learn about alternative housing options on Share to Buy!

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, the participating mortgage lenders are Nationwide Building Society, Newcastle Building Society and Accord Mortgages.

The 31 participating home builders are outlined below:

Barratt HomesDevine HomesNorfolk Homes
Barratt LondonEdenstone HoldingsPat Munro
BewleyHayfield HomesProspect
Bloor HomesHillRedrow
City & CountryKeepmoat HomesSt Modwen Homes
Countryside Properties
Mandale HomesTaylor Wimpey
Crest NicholsonMiller HomesThakeham
CroudaceMorris HomesVistry
Davidson GroupNicholas King HomesWheeldon
David Wilson 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!