What is the eligibility for Deposit Unlock?

All budding buyers dream of owning their own home one day, but many first time buyers feel locked out by the prospect of saving a huge deposit. Thankfully, there are loads of ways to make the financial burden a little lighter. One such option is Deposit Unlock; an affordable homeownership scheme that helps you buy a home with as little as a 5% deposit!

Deposit Unlock sounds like a great idea in terms of prospects, but not everyone can take advantage of the scheme. To find out if you fit the criteria, check out our guide below:

What is Deposit Unlock?

As the name suggests, Deposit Unlock is a scheme that ‘unlocks’ the full potential of your house deposit by letting you buy a home with just a 5% deposit. While mortgage lenders can often be quite strict about the amount you can lend for a new-build property (you’ll usually need a deposit of 15%-25%), the shackles are off with Deposit Unlock, which gives home-buyers a loan amounting between 90.01% and 95% of the property purchase price. Depending on your needs, you could end up borrowing up to £750,000 for your dream property!

Photo of a bedroom. Start your home-buying journey on Share to Buy today!

What is the eligibility criteria for Deposit Unlock?

You might love the sound of Deposit Unlock, but are you able to take part? Here are some of the key eligibility criteria for Deposit Unlock:

You must not already own a property

Given that Deposit Unlock was designed to help out struggling first time buyers, the scheme isn’t available for current homeowners. Still, that doesn’t mean that only first time buyers get to use Deposit Unlock. You can also enjoy the perks of the scheme if you are in the process of selling a property you already own, or have sold a property in the past!

You can’t borrow a loan higher than £750,000

If you’ve just discovered Deposit Unlock, you might wonder – how much can I borrow? With Deposit Unlock, you can borrow up to 95% of the value of the home you are buying. For example, if you’re buying a home worth £200,000, you’ll need to borrow a sum of £190,000, and put down a deposit of £10,000. The maximum amount you can usually borrow is £750,000 – although this will depend on your housing provider and your financial situation.

You can only purchase a home from certain housing providers

In an ideal world, Deposit Unlock would be available on every property on the market. But in practice, you will have to make sure to find a specific home builder and mortgage lender that offers the scheme. Thankfully, there are a lot of housing providers that currently offer Deposit Unlock, with more than 35 currently offering the scheme! Get a full rundown of the participating providers 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 is only available on new-build homes

If you want to take advantage of Deposit Unlock, it’s worth noting that the scheme is only available on specific new-build properties. However, this requirement isn’t a curse, but a blessing – there are a ton of benefits that come with owning a new-build property.

Built with the latest appliances and fixtures, your home is far less likely to succumb to issues like wear and tear, meaning you’ll avoid paying for extensive repairs. What’s more, the energy-efficient materials used for newer properties are far better for the environment, and your energy bills.

Looking to give your house deposit a much-needed boost? With Share to Buy, you can discover plenty of housing providers that offer Deposit Unlock, which cuts out the time-consuming process of saving for your deposit. Alternatively, you can get the keys to your future home using Share to Buy’s property portal.