Affordable Mortgage Scheme Unlocks Homeownership for Hundreds
New Homes Week has given great insights into the current situation of the homebuilding industry and in this instalment of our mini blogs to support the campaign, we are shining a light on the success of Deposit Unlock.
Deposit Unlock was an affordable mortgage scheme launched by the Home Builders Federation (HBF) in partnership with major homebuilders and the reinsurance broker, Gallagher Re.
Created in response to the ending of the government’s Help to Buy scheme, this 5% deposit mortgage scheme is already helping hundreds to realise their dreams of homeownership.
Having begun with only 17 homebuilders, now 50 builders have signed up to the scheme, with more set to join, and the list of lenders to choose from is growing.
Through Deposit Unlock, mortgage lenders receive protection on mortgage products, meaning they can lend to consumers at 95%.
A new build home worth up to £833,000 can be bought through the scheme with only a 5% deposit and a competitive mortgage product.
Research carried out by Yonder Data Solutions for New Homes Week found that 18% of people felt that the uncertainty about whether they would be able to secure a mortgage was the main issue preventing them from buying a house.
Deposit Unlock is enabling homebuilders to support people while they access competitive mortgage products that they might otherwise be unable to obtain. With the cost of living crisis creating challenges for any borrower, schemes such as this are going to make all the difference to whether homeownership is a possibility for the masses.
You can find out more about Deposit Unlock here and on participating homebuilders’ and lenders’ websites.