Deposit Unlock for House Builders
Deposit Unlock is the housebuilding industry’s collaborative replacement to Help to Buy
Deposit Unlock will close to new completions in April 2026. Outstanding mortgage offers at that point will continue to be honoured by the relevant lender. All existing customers who have secured loans with assistance from Deposit Unlock will continue to be supported and their mortgages will remain unaffected.
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.
