It will join Nationwide, Yorkshire Building Society’s Accord Mortgages, Bluestone Mortgage and Newcastle Building Society in offering buyers with a 5% deposit competitive interest rates on mortgages for new build homes.
The scheme was launched in 2021 as a way to help both first-time buyers and existing homeowners with small deposits the opportunity to buy a home.
It was developed by reinsurance broker, Gallagher Re, in partnership with the Home Builders Federation (HBF). As well as lenders coming on board to provide the mortgages, the scheme also relies on homebuilders joining up to provide homes in new build plots across the UK.
Perenna, which will launch its mortgage to the scheme in mid-April, offers flexible long-term fixed rate mortgages.
It said it can lend up to six times an individual’s income, improving affordability for those struggling to step onto the housing ladder. Perenna’s mortgage comes with short early repayment charges of no more than five years.
Under Deposit Unlock, Perenna will accept up to a 5% deposit contribution from developers who offer this incentive. This means customers could buy their new build home with zero deposit where the builder is contributing the full 5%.
Perenna’s Deposit Unlock 90.01-95% LTV mortgages have rates starting at 5.92%.
Colin Bell, founder and COO of Perenna, said: “Affordability remains a struggle for many buyers and especially first-time buyers, and through this partnership and our consumer-friendly affordability boost mortgage we will help aspiring homeowners realise their dream of homeownership and living in the home they really want.
“By enabling deposit contributions from developers, we’re opening doors to the possibility of zero deposits for some customers. This partnership is a winner for aspiring homeowners of new build homes.”
