By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


Forget Help To Buy Equity Loan - welcome to Deposit Unlock

A housebuilding-led mortgage indemnity scheme called Deposit Unlock has now been launched nationally with 17 major developers taking part.

Nationwide is the latest and arguably the highest-profile lender signed up to the scheme and will offer the product on new builds for both first-time buyers and second steppers up to £750,000. 

Newcastle Building Society, which was the first lender to offer Deposit Unlock nationally following a trial in the north of England, has recently seen the first completions under the scheme.


Supporters say Deposit Unlock will help open up the new build market to more borrowers who do not have access to large deposits or the ‘Bank of Mum and Dad’, and mitigate the demise of Help To Buy equity loans. 

The mortgage indemnity scheme has been developed by the Home Builders Federation and 17 of its largest members; it will be available on developments across England, Scotland and Wales. 

Upon completion of home purchases offered as part of the scheme the developer funds a mortgage indemnity and deposits cash to cover any potential losses. The scheme greatly reduces risk for the lender, protecting them from a proportion of the potential loss in the event of any default.

Stewart Baseley, executive chairman of the HBF, says: “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 homeownership 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.

“”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.”


And Andy Dean, head of new build at Nationwide Building Society, adds: “Raising a deposit continues to remain one of the biggest challenges facing those looking to move into their first home or on to their next. That is why we are pleased to be supporting Deposit Unlock and it’s great to see that it is now being rolled out nationally, providing a real boost to the new build sector.

“Supply of new housing also remains key to supporting first-time buyers and second steppers. Given the current strong appetite for new build properties, the Deposit Unlock scheme is particularly timely, especially given the forthcoming end of the Help to Buy Equity Loan scheme.”


Please login to comment

MovePal MovePal MovePal
sign up