Deposit Unlock for Lenders
Deposit Unlock: a guaranteed mortgage indemnity solution for lenders in the 95% New Build space
about
What is Deposit Unlock?
Deposit Unlock is an innovative industry mortgage guarantee scheme designed to help borrowers secure a new-build home 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 a replacement 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, and backed by the HBF, utilises a protected cell captive to provides mortgage insurance to lenders allowing them to lend on new-build housing, at a 95% loan-to-value ratio, with reduced risk exposure.
Deposit Unlock launched in June 2021 and Gallagher Re administers the scheme on behalf of HBF members.
Why?
Why join Deposit Unlock?
The Deposit Unlock mortgage guarantee scheme allows any lender to access to the new-build 95% LTV market with free mortgage indemnity protection, protecting participating lenders throughout the economic cycle, provided by the participating house builders.
Get involved
What are the benefits to the lender?
Deposit Unlock offers mortgage lenders deep and broad protection when lending on new homes with a 95% loan-to-value ratio.
The scheme is administered by Gallagher Re, the reinsurance division of Gallagher—one of the world’s largest insurance brokerage, risk management and consulting firms. Gallagher Re has made the administration process straightforward for lenders, and created a simple and unobtrusive journey for their customers to become homeowners with a small deposit.
Should a lender need to make a claim through the scheme, there will be a guaranteed claims payment via a single legal insurance policy.
There is no cost involved for lenders in joining the Deposit Unlock scheme – no upfront payment, charges, or ongoing management fees. In addition, the scheme is capital relief eligible.
No Cost
- Deep & broad lender protection covering most extreme economic loss scenarios, and covering from 95% LTV to 60% LTV
- No premium, fees or management cost of any kind paid by lenders
Administration Simplicity
- Only lender contract required is the policy document
- Lender treats protected loans as any other loan in portfolio
Guaranteed Claims Payment
- No exclusions: All claims paid immediately on a pay and no dispute basis
- Waved subrogation rights
Capital Relief
- Policy wording and scheme structure fully Basel compliant
- The structure and wording match capital relief qualifying conditions of Help to Buy Mortgage Guarantee
Egalitarian Structure
Level playing field for both lenders and house builders
How to join
What are the next steps to join?
To find out more please contact Gallagher Re who administrates the scheme.
Participating LENDERS
