Deposit Unlock for House Builders
Deposit Unlock is the housebuilding industry’s collaborative replacement to Help to Buy
about
What is Deposit Unlock?
Deposit Unlock is a mortgage-backed lending scheme designed to help your customers secure a new-build home with just a 5% deposit.
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 Help to Buy.
On behalf of these builders, the HBF commissioned Gallagher Re – the reinsurance division of Gallagher – to design, initiate and implement such a scheme.
The solution proposed by Gallagher Re, issues an mortgage insurance policy to lenders to allow them to lend on new-build housing, with a 95% loan-to-value ratio and a loan value of up to £750,000 (sale price £833,000).
Launched in June 2021, Deposit Unlock has been helping customers across the UK access 95% lending to purchase their dream new build home.
Help to buy
Is it replacing Help to Buy?
Deposit Unlock has been designed as a private sector alternative, as the government seeks to end its Help to Buy mortgage guarantee scheme – which has already become more restricted in its availability to buyers seeking to purchase their first home. Currently, Help to Buy is due to end in March 2023, meaning that without an alternative scheme for small-deposit mortgages, first-time buyers will face even greater challenges, as well as those wishing to move up the ladder and buy their second home.
administration
Who owns the Deposit Unlock scheme?
The HBF owns the Deposit Unlock scheme – it belongs to the house building community.
All house builders involved in the scheme have a say in its strategic direction and, for the first time, a seat at the table in the high LTV new-build lending space. Gallagher Re worked in partnership with the HBF to devise the scheme on behalf of their members, including the 17 property developers who founded the scheme.
Gallagher Re administers the scheme on behalf of HBF members. They have made the administration process straightforward for lenders, and created a simple and unobtrusive journey for their customers to become homeowners with a small deposit.
Get involved
What are the joining requirements?
To join the Deposit Unlock low-deposit mortgage scheme, you need to be a member of either the Home Builders Federation or Homes for Scotland.
How to join
What are the next steps to join?
First step is to fill out the enquiry form and we will be in touch.
FREQUENTLY ASKED QUESTIONS
What membership bodies do I need to join?
You will need to be a member of the Home Builders Federation (England & Wales), Homes for Scotland (Scotland), or Construction Employers Federation (Northern Ireland).
How much does it cost to join? (Excluding trade body membership costs)
There is a small sign up fee. Please contact [email protected].
Are there any additional fees?
There is a separate HBF entry fee for large organisations, please enquire here for more information. To find out more about the scheme cost, please contact [email protected].
How long does it take to join the scheme?
The timeline from entry to launch will be entirely driven by the house builder’s internal process to review and agree legal documentation and ability to complete the due diligence requirements. Gallagher Re will be able to support throughout this process. Upon completion of the second stage, the house builder can be live on the scheme within two weeks.
What are the legal requirements of the scheme?
The entity chosen for registration needs to ensure there are no signs of insolvency to avoid a pre-funded sales route to utilise Deposit Unlock.
Do you have to be a certain size developer to join the scheme?
No, the scheme is open to developers of any size.