Deposit Unlock for brokers
Helping mortgage brokers help their clients to a new build home
What is Deposit Unlock?
A mortgage-backed lending scheme.
Deposit Unlock is a mortgage-backed lending scheme designed to help borrowers secure a new-build home with a loan value of up to £750,000 (sale price £830,000), and with a deposit of just 5%.
A group of 17 property developers—part of the trade body, Home Builders Federation (HBF)—recognised the need for a private sector mortgage guarantee scheme as an alternative to the government’s Help to Buy scheme.
The solution proposed by Gallagher Re, and backed by the HBF, will utilise a protected cell captive to issue mortgage insurance to lenders, to allow them to lend on new-build housing, with a 95% loan-to-value ratio, with reduced risk exposure.
benefits
Benefits for mortgage brokers
- You just need to obtain the Loan Confirmation Letter from the builder, for the lender
- They only need a 5% deposit
- They’ll own 100% of their home
- You just need to obtain the letter from the builder for the lender
- Only available via mortgage brokers
Typical example
Cost of new home
£300,000
5% deposit
£15,000
95% mortgage
£285,000
Figures shown are provided for illustration purposes only. Please consult an independent financial advisor. For full terms and conditions, please ask a sales advisor at your selected development.
How it works
Why the mortgage broker is an important component in Deposit Unlock
It is recognised amongst all Deposit Unlock stakeholders that mortgage intermediaries are a key link in the distribution chain, and play an important role in helping first-time buyers and other borrowers to secure high LTV mortgages—particularly at a time when house prices and mortgage rates are rising.
Throughout the project development, the mortgage broker community has been aware and involved in the progress of Deposit Unlock through the HBF in various broker conferences, and, more directly, Gallagher Re. This has included engagement with and prepare all brokers likely to be involved with specific house builder participation.
The feedback from brokers has been overwhelmingly positive, and the mortgage intermediary business will continue to play a vital role in Deposit Unlock’s success.
How to buy with
Deposit Unlock
Deposit Unlock is a straightforward process that makes home ownership more affordable.
1.
Buyer views and reserves thier chosen property with the scheme’s house builders.
2.
House builder issues a Loan Confirmation letter.
3.
Buyer passes the letter to the mortgage broker.
4.
Lender records unique ID and offers a mortgage under Deposit Unlock.
Available with:
