A scheme to support buyers with low deposits to purchase new build homes has expanded as four more house builders have announced they will be offering properties as part of the initiative.
Deposit Unlock allows buyers with a 5% deposit to purchase a home in England, Scotland and Wales and was created to assist in filling the gap which will be left when the Help-to-Buy scheme ends in 2023.
The scheme was developed by Gallagher Re, a reinsurance broker, which will back the mortgages offered. It is working in partnership with the Home Builders Federation (HBF) along with mortgage lenders such as Nationwide Building Society and Newcastle Building Society.
In the latest development, Gallagher Re has announced four more housebuilders will be coming on board. Wheeldon Homes, Mandale Homes, Edenstone and Devine Homes have now joined the 17 founder house builder members.
This will ‘significantly expand’ the number of property developments where low-deposit buyers can take advantage of the scheme.
Replacement for the Help-to-Buy scheme
Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, which now administers and manages the scheme, explained all those involved in Deposit Unlock aimed to develop a long-term, sustainable solution for the end of Help to Buy, which would benefit the entire new build industry, along with lenders and home buyers.
“It is great to see our first additional tranche of house builders join this low-deposit new build scheme, which demonstrates wider industry backing for Deposit Unlock,” he said.
“It is also another significant milestone for everyone involved in the scheme as we prepare for go-live with many more house builders and lenders throughout the course of 2022.
“We are proud to be playing our part in this fantastic example of cross-industry collaboration, which is addressing an important social challenge in a tangible way.”
Gallagher Re said as well as Newcastle Building Society and Nationwide putting their weight behind the initiative with the launch of new product ranges, over 20 additional lenders had also engaged with the scheme.
Potential buyers interested in using the scheme can get access to mortgages via brokers.
[box style=”4″]
Need help to find a mortgage? What Mortgage has teamed up with L&C to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
[/box]
