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The Deposit Unlock scheme helps first time buyers and home movers buy a new build home with a 5% deposit. We look at how it works, Deposit Unlock scheme mortgage options and whether it’s the best option for you.
Deposit Unlock is a scheme that lets you buy a new build home from a participating home builder with a 5% deposit, using a mortgage from a participating lender. These mortgages are only available via mortgage brokers. First time buyers and home movers can use the Deposit Unlock scheme.
While Deposit Unlock is still fairly new, it may prove popular with buyers as a way to purchase a new build home with a small deposit as lenders are often reluctant to offer high loan-to-value mortgages on new build homes.
It is also likely to fill the gap after the Help to Buy Equity Loan scheme, which let first time buyers purchase a new build home with a 5% deposit, closed to new applicants in October 2022.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Mortgage lenders are often stricter on the amount they are willing to lend on the purchase of new builds. This is to protect themselves from the inevitable devaluation of the property in the early years and other risk factors. As such, some lenders may set the minimum deposit for new build properties at 15% or even 25%.
Deposit Unlock gets round that and allows you to buy a new build with just a 5% deposit. With the Deposit Unlock scheme in the UK, the house builders pay to insure the mortgages instead. And they use some of the money from selling the homes for this purpose; the aim is to make lenders more comfortable about offering high LTV mortgages on new builds.
This scheme is exclusively for new build homes.
And the maximum loan you can take out to buy a property through the Deposit Unlock scheme is currently £750,000. Although this depends on the lender and your circumstances.
Read more about buying a new build home and new build mortgages.
To be eligible for the scheme, you’ll need to find a new build home offered using Deposit Unlock with one of the following participating home builders.
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
Metis Homes
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
There are currently only a few mortgage providers that will offer mortgages to people buying through the Deposit Unlock scheme: Accord, Perenna and Bluestone Mortgages. And these mortgages are only available via a broker.
Considering the Deposit Unlock scheme? Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
With Accord Mortgages, you can borrow up to £600,000 when buying a home through the Deposit Unlock scheme, depending on your circumstances. But you’ll need to go via a mortgage broker to get access to the deals. In Winter 2026, Accord Mortgages offered a 5 year Deposit Unlock fixed rate of 5.25%, with an arrangement fee of £495 with a free valuation and £250 cashback.
While if you’re looking for a 2 year fix, Accord Mortgages offers a rate of 5.71% with a £495 arrangement fee, £250 cashback and a free valuation.
But rates are subject to change so speak to a fee-free mortgage broker to get the most up to date information.
Perenna offers long-term Deposit Unlock mortgages. For example, in Winter 2026, Perenna offers a rate of 6.46% on terms of 10 to 30 years with a product fee of £1,999. Although you won’t pay an early repayment charge after 5 years.
Bluestone Mortgages offer Deposit Unlock mortgages up to £600,000. In Winter 2026 Bluestone Mortgages offered Deposit Unlock mortgages at 7.04% for a 2 year fix with a £1,495 fee. For a 5 year fix, it offers a Deposit Unlock mortgage rate of 6.79% with a fee of £1,495. While these rates are higher than other lenders’, it may be an option if you don’t fit mainstream lenders’ lending criteria.
Again, rates are subject to change and the best mortgage for you depends on your circumstances So it’s a good idea to get fee-free advice from a mortgage broker.
Newcastle Building Society was the first lender to announce a mortgage completion under the Deposit Unlock scheme in November 2021. This was part of a pilot scheme in North East England that involved properties with a maximum value of £330,000. Since then, Newcastle increased its maximum loan amount to £750,000.
However, Newcastle Building Society no longer offers Deposit Unlock mortgages.
Nationwide did offers loans on homes bought through the Deposit Unlock scheme up to £750,000, available through mortgage brokers. However, it stopped accepting Deposit Unlock applications on 22 November 2024.
The main benefit of Deposit Unlock is that it is another scheme offering first time buyers – and home movers – access to 95% mortgages on new build properties.
However there are also limitations to the scheme. For example, it is not suitable for individuals who would own another property on completion, for example a buy-to-let.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
There is another scheme designed to make it easier and cheaper to buy a new build home. The Own New Rate Reducer scheme allows you to buy a new build home with a mortgage and pay a reduced mortgage rate. When you choose your property, the developer will agree to contribute 3% or 5% of the purchase price. House builders do this as an incentive for you to buy their properties.
The developer’s contribution goes to your mortgage lender, via Own New. The lender will take the developer’s contribution of 3% or 5% and offset it against the mortgage interest to reduce your monthly payments for the first 2 or 5 years, depending on the length of your initial term. See our guide for more information on the Own New Rate Reducer scheme.
Own New also offers the Deposit Drop scheme, which lets people buy a new build home with a 5% deposit. It launched in the North East and Yorkshire in 2023, with plans to broaden out where it’s available in due course.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Any scheme that can help people buy a home with a small deposit may be worth looking into. However, it’s important to think about the limitations too. These include:
The scheme isn’t the only way to get a mortgage with a 5% deposit. 95% mortgages are now more prevalent after the government introduced the Mortgage Guarantee Scheme. And if you can’t get a 95% mortgage on a new build, why not consider buying an older property. If you go down this route you’ll have a much wider choice of property that you can buy and may have access to a wider range of lenders too.
If you are lucky and have access to the Bank of Mum and Dad or time to save a little longer, then explore those options as well. Or you may consider shared ownership or the First Homes Scheme.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Whether you’re a first time buyer or home mover, with the Deposit Unlock scheme you can buy a new build house with just a 5% deposit from a participating house builder, and by getting a mortgage from a participating lender (currently Accord, Perenna and Bluestone Mortgages). For a more detailed look at everything you’ll need to consider when buying a house, read our Step by step guide to buying a house.
Accord, Perenna and Bluestone Mortgages offer Deposit Unlock mortgages. But you can only access these mortgages via a mortgage broker and the right mortgage for you will depend on your personal circumstances.
No. First time buyers and home movers can use Deposit Unlock. If you’re hoping to get on the property ladder, read our Guide to buying your first home.
The average first time buyer deposit in 2024 was £61,090, according to research by Halifax.
Yes, the Deposit Unlock scheme is available in Scotland. You can find properties by speaking to developers at local developments or by searching online.
You’re eligible for the Deposit Unlock scheme if you’re a first time buyers or and home movers. But it’s not suitable if you’d own another property when you complete and you may face extra hurdles if you’re self-employed.
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