Forget the help to buy an equity loan


A homebuilding-focused mortgage compensation program called Deposit Unlock has now been launched nationwide with the participation of 17 major developers.

Nationwide is the latest and arguably the most prominent lender to sign up to the scheme and will offer the product on new builds for first-time and second-time buyers up to £ 750,000.

The Newcastle Building Society, which was the first lender to offer nationwide deposit release following a trial run in the north of England, recently saw the first completions under the program.

Supporters say Deposit Unlock will help open up the new build market to more borrowers who don’t have access to large deposits or “Mommy and Daddy’s Bank,” and mitigate the demise of Help To stock loans Buy.

The mortgage compensation scheme was developed by the Federation of Home Builders and 17 of its leading members; it will be available on developments in England, Scotland and Wales.

At the end of the housing purchases offered under the program, the developer finances a mortgage indemnity and deposits cash to cover potential losses. The scheme greatly reduces the risk for the lender, protecting them from some of the potential loss in the event of default.

Stewart Baseley, Executive Chairman of the HBF, said: “Making sure people can buy a new home is key to the industry’s ability to achieve the government’s housing ambitions. Too many people are unable to achieve their home ownership ambition because they simply cannot afford the required deposit.

“The industry has worked hard to develop a sustainable solution that will help more potential buyers access the housing ladder, maintain demand, and thereby enable builders to deliver homes that are most urgently needed.

“” With the new purchase aid program now less accessible in some regional markets, including many parts of northern England, and with the program closing in 2023, a new option was needed. This launch is a testament to the foresight and investment of 17 of our members. We are also grateful for the commitment shown by our two launch lender partners and look forward to welcoming more in the months to come. “

Andy Dean, New Construction Manager at Nationwide Building Society, adds, “Raising a deposit continues to remain one of the biggest challenges faced by those looking to move into their first or next home. That’s why we’re thrilled to support Deposit Unlock and it’s great to see that it’s now being rolled out nationwide, giving the new build industry a real boost.

“The supply of new housing also remains essential to support first-time buyers and second-step buyers. Given the current strong appetite for new construction properties, the deposit release program is particularly timely, especially given the upcoming end of the equity loan purchase assistance program. “


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