Deposit Unlock, the housebuilding industry led mortgage scheme, has launched nationally with 17 major builders after a successful regional pilot.
Nationwide was the latest major lender to sign up to Deposit Unlock, offering the product on new-build properties for both first-time buyers and second steppers, up to £750,000.
Newcastle Building Society was the first lender to offer Deposit Unlock nationally, following a successful trial in the North East, has recently seen the first completions under the scheme.
The mortgage indemnity scheme has been developed by the Home Builders Federation and 17 of its largest members, alongside Homes for Scotland and scheme manager Gallagher Re.
It will be available on developments across England, Scotland and Wales and is open to all HBF and HfS members. More builders will be added in the coming weeks.
Stewart Baseley, executive chairman of HBF, said; “Ensuring people can buy a new build home is key to the industry’s ability to deliver the government’s housing ambitions.
“Too many people are unable to realise their ambition of home ownership because they simply can’t afford the deposit required.
“The industry has worked hard to develop a sustainable solution that will help more prospective buyers onto the housing ladder, maintain demand and so enable builders deliver more desperately needed homes.
“Help to Buy has played a significant role in supporting increases in housing supply in recent years and has turned home ownership dreams into reality for hundreds of thousands of households.
“However, with the new Help to Buy scheme now less accessible in some regional markets including many parts of northern England, and with the programme closing in 2023 a new option was required.
“This launch is testament to the foresight and investment made by 17 of our members.
“We are also grateful for the commitment shown by our two launch lender partners and look forward to welcoming others in the coming months.”