Welcome to a new possibility in affordable homeownership: Rezide equity loan scheme

If you’ve been doing everything you can to save for a home but still feel the finish line is just out of reach, there’s a new scheme that could help change that: the Rezide equity loan.

Brought to you by leading housebuilders, Barratt Homes, Barratt London, Charles Church, David Wilson Homes and Persimmon, Rezide has been designed to give aspiring homeowners a fresh, realistic shot at owning a brand-new home.

At Share to Buy, we believe in making pathways to homeownership clearer, so here’s a straightforward breakdown of how Rezide works, why it could matter for you, and how to decide if it’s a fit.

What is Rezide?

Think of Rezide as a boost to your deposit. The scheme is aimed at home-buyers (first timers, second steppers and downsizers) who may struggle to raise a big enough deposit or feel locked out of the new-build market.

Under this scheme:

• You put down a minimum 5% deposit of the purchase price – up to a value of £660,000.
• Then you take out a Rezide equity loan for 15% of the property’s market value to help boost your deposit. The loan will be a minimum of £15,000 and cannot exceed £100,000.
• You then arrange a mortgage for the remaining 80% from a participating lender. A specialist mortgage broker can help you explore your options.
• The loan is privately funded (not a government scheme like the old Help to Buy equity loan, which has now ended) and is secured as a second charge on the property.
• The interest rate on the equity loan is fixed at around 4% throughout the term, giving you peace of mind with your monthly repayments.

In short: a smaller deposit + an equity loan + a mortgage = 100% of your home (you own 100%) with less upfront cash required.

Why is this such a big deal?

Raising a substantial enough deposit to buy a home is far too often the roadblock people face when it comes to buying their first or next property, but with the new Rezide scheme, there’s less financial pressure.

Let’s explore the benefits in more detail. Here are some of the key reasons this could be a game-changer if you’re struggling to buy a home:

• Lower deposit barrier: Many new-build home purchases require much bigger deposits. With Rezide, you could get moving with just 5%.
• Better mortgage terms: Because you’re borrowing an 80% mortgage instead of maybe 90-95%, you may access more favourable interest rates since your loan-to-value (LTV) is lower.
• Own your home fully from day one: You legally own 100% of the home, but a portion of the purchase price is funded by an equity loan.
• Repayment flexibility: You can repay part or all of the 15% equity loan at any time without early repayment charges.
• Access to new-build market: Rezide is available on selected new homes across England and Wales (with a maximum value of £660,000). For many buyers aiming for new-build standards, such as energy efficiency and modern layouts, this could open doors.

Who is eligible?

While you’ll need to check all the fine print via an authorised mortgage advisor, here are the common eligibility criteria:

• You must be a UK resident.
• The main buyer needs to be at least 21 at the start of the loan, and no older than 75 when the loan term ends.
• The home must be your main residence (not a buy-to-let, holiday home or commercial property).
• The home must be a new-build located in England or Wales.
• You must contribute at least 5% deposit and secure a mortgage of up to 80% LTV, with the equity loan covering the remaining 15%.
• All applications need to be made through an FCA-authorised mortgage intermediary, who will assess your affordability.
• The maximum value for homes under this scheme is £660,000 (depending on the builder and location), and the loan cap is £100,000.

Important things to check and consider

Buying a home is a major financial commitment, so it’s sensible to keep these in mind:

• Because the equity loan is 15% of the home value at redemption (meaning when you pay off your mortgage in full), if your home value goes up, you’ll owe more.
• The interest rate on the loan is fixed at 4%. That’s steady, but not zero. You’ll need to factor this in alongside your mortgage repayments.
• Availability is limited, with the scheme only available on selected homes at new-build developments offered by participating builders, so you’ll need to check property listings carefully. You may need to wait until more properties become available under the Rezide scheme.
• Housing schemes don’t replace good mortgage planning: you’ll still need to check mortgage affordability and choose a home that suits you long-term, considering location, maintenance, new-build premiums, and other factors. We recommend thorough research and planning so you can buy with confidence.
• As always, it’s important to remember that your home may be repossessed if you don’t keep up repayments on your mortgage or the equity loan.

Could this be your pathway to homeownership?

If you meet the eligibility criteria, and if any of the following apply to your current circumstances, then Rezide may well be able to help you onto the property ladder:

• You’ve been struggling to raise a larger deposit for a home on the open market, but you have a regular income and can afford the mortgage repayments.
• You’re looking at new-build homes (and their benefits: energy efficiency, modern layout, fewer immediate repairs) and you’d like a route into that market.
• You’re open to reviewing your costs, factoring in the 4% interest on the equity loan.

Homeownership could be closer than you think

At Share to Buy, we know that owning your first home (or stepping up the ladder) can feel like scaling a mountain. Schemes like Rezide shine a light on a potential path – one where you’re not waiting decades to save a big deposit.

Think of Rezide as an option in your home-buyer toolbox, and one that could open the door when the time’s right.

However, if Rezide doesn’t feel like the right fit for you, don’t be disheartened; there are many other affordable buying and rental schemes available. Head over to our buying schemes hub, where you’ll find information on many other accessible routes to homeownership, all designed to help you find your pathway and move forward with clarity and confidence.