How does the Deposit Unlock Scheme work?

  • For First Time Buyers and Home Movers
  • Available for new build homes
  • Can be used with part exchange
  • For mortgages between 90.01-95% loan to value

What is the Deposit Unlock Scheme?

Released as an alternative to the Government’s Mortgage Guarantee Scheme, the Deposit Unlock scheme is available for the purchase of new build properties only.

The scheme enable buyers with a 5% mortgage deposit to purchase their home by means of a 95% mortgage. It was created through a direct collaboration between home builders, mortgage lenders, the Home Builders Federation and Gallagher Re.

Initially, a “soft” launch was brought to the market in June 2021 with just one mortgage provider participating in the scheme. There is now a long list of home builders involved in the scheme, and several lenders support the scheme too.

Provided by the Home Builders Federation, we have provided a full list of home builders who are involved with the scheme:

·         3West Group

·         A R Cartwright

·         AJ Property Group

·         Allison Homes

·         Anderson Design & Build

·         Anderson O&U

·         Ashberry Homes

·         Ashwood Homes

·         Baker Estates Limited

·         Barratt Homes

·         Barratt London

·         Beal Homes Limited

·         Bellway Homes

·         Bellway London

·         Bewley

·         Blackstone Developments Limited

·         Bloor Homes

·         Bovis Homes

·         Braidwater Limited

·         CALA Homes Limited

·         Campion Homes Limited

·         Chase New Homes

·         City & Country Homes

·         Countryside Properties

·         Crest Nicholson

·         Croudace Homes

·         David Wilson Homes

·         Davidson Group

 

 ·         Deanfield Homes

·         Denbury Homes

·         Devine Homes

·         Devonshire Homes

·         Durkan Estates

·         Edenstone Holdings

·         Edwards Homes

·         Fairgrove

·         Fairview

·         Fenwood Estates

·         Fortitudo Limited

·         Genesis Homes

·         Gleeson Build & Develop Limited

·         H&H Properties

·         Hagan Homes

·         Hayfield Homes

·         Hill

·         Hopkins Homes Limited

·         Ilke Homes

·         Kebbell Country Homes

·         Kebbell Development

·         Keepmoat Homes

·         Kitewood Estates Limited

·         Lagan Homes

·         Life Less Ordinary

·         Linden Homes

·         Macar Developments

·         Mandale Homes

 

 ·         MCI

·         Miller Homes

·         MJ Gleeson PLC

·         Morris Homes

·         Morrish Homes

·         Nicholas King Homes

·         Norfolk Homes

·         Orbit Homes

·         Pat Munro Homes

·         Pearce Fine Homes

·         Pentland Homes Limited

·         Persimmon

·         Peter Ward Homes

·         Prospect Homes

·         Redrow

·         Sigma Homes

·         St Modwen Homes

·         Stonebond Group

·         Stonebridge Homes

·         Taylor Wimpey

·         Thakeham

·         Thomas Homes

·         Tilia Homes

·         Vistry Group

·         Waters Homes

·         Weston Homes PLC

·         Wheeldon Brothers

·         Woodstock Homes

Also provided by the Home Builders Federation, below we have listed the three mortgage lenders who will lend through this scheme.

How do you qualify for the scheme?

In order to qualify for the scheme, you must meet the following criteria:

  • You need a 5% deposit for the mortgage
  • You must be a first-time buyer or home mover
  • The property must be a new build
  • You must be buying the property from a participating home builder
  • The maximum property price must be £833,250, subject to lender’s participation.
  • You can’t obtain a Buy-to-Let mortgage through the scheme

On top of all the criteria above, you will need to ensure you are able to qualify for a mortgage. When assessing your application a mortgage lender will look at things like:

  • Income and expenses
  • Credit score
  • Employment status

If you’re unsure if you qualify for the scheme, or if you just want to speak to an expert about your situation, reach out today!

One of our expert advisors will be able to discuss your needs over a free initial consultation.

ORGANISE YOUR FREE CONSULTATION

How to get a mortgage through the scheme

Knowing what to expect is a great way to prepare and make sure you don’t encounter any unexpected obstacles when looking to get a mortgage.

Step-by-Step

Step 1

Step 1

You will first need to find a participating home builder or developer. You will then need to find a home you would like to buy and believe you can afford.

Step 1
Step 2

Step 2

Once you have established that the property is available through the Deposit Unlock scheme, you can begin to look for mortgages.

Step 2
Step 3

Step 3

Working with your mortgage broker, you can be paired with the most suitable lender out of the three available.

Step 3
Step 4

Step 4

If you and your broker are happy to apply for a product, you can do so. The mortgage application process from start to finish can take several weeks to complete.

Step 4
Step 5

Step 5

If successful, you will be offered a mortgage and arrange a moving-in date with the home builder.

Step 5

Using a mortgage broker to support you

There are several aspects to think about when applying through the scheme. However, with the support of an expert mortgage broker, things can be made a little easier.

At IMC Mortgage Brokers we will be able to do all the legwork for you, saving you time to focus on other areas of buying a house.

If you want to discuss your mortgage options, feel free to reach out today and our team will be happy to help.

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