Accord Mortgages becomes the latest lender to launch a 95% loan-to-value product range for new build homes under the private sector initiative as the government’s Help to Buy and mortgage guarantee schemes prepare to close.

Gallagher Re, the global reinsurance broker, today welcomed Accord Mortgages – the intermediary-only lending subsidiary of Yorkshire Building Society – to Deposit Unlock, the innovative reinsurance-backed mortgage indemnity scheme it helped design and develop for the house building industry to fill a growing gap in low-deposit lending for the new build market.

Gallagher Re – which now manages the scheme it developed in partnership with the Home Builders Federation (HBF), Homes for Scotland, the lending community and mortgage brokers – applauded Accord Mortgages for taking steps to extend its support of borrowers with smaller deposits. Accord’s new product range launched today under Deposit Unlock will increase the choice of competitively priced 95% LTV mortgages at a time when government support for low-deposit borrowers is set to end, with applications for the Help to Buy shared equity loan scheme closing in less than three months and its own mortgage guarantee scheme ending on 31 December 2022.

Gallagher Re welcomes Accord Mortgages as latest major UK lender to join reinsurance-backed scheme Deposit Unlock

Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, said: “We are absolutely delighted to welcome Accord Mortgages to the Deposit Unlock scheme, bringing more choice in quality, competitive, high LTV mortgages for new build properties at a time when they are needed most.

“With the imminent closure of government assistance schemes, the cost of living crisis impacting so many families’ finances and the ability to save a sizeable deposit being such a big barrier to realising the dream of home ownership, it is great to have another major lender taking steps now to ensure the continued support of those with smaller deposits.

“The successful expansion of this private sector initiative is enabling more people to get on the property ladder every day by providing access to low-deposit lending at affordable rates – and so solving a real socio-economic problem. The scheme also strives to make sure that well-insulated, energy-efficient homes are within reach of first-time buyers and second-steppers.

Gallagher Re welcomes Accord Mortgages as latest major UK lender to join reinsurance-backed scheme Deposit Unlock

“Deposit Unlock is a fantastic example of cross-industry collaboration, with house builders, lenders and the insurance industry coming together to create a long-term sustainable solution that unlocks the availability of mortgages for new build homes at zero cost to the taxpayer. Accord’s product range launch also comes at an important time for the scheme as it expands outside of the original house builders to the entire market.”

Deposit Unlock soft launched in partnership with Newcastle Building Society last summer and 17 founding members of the Home Builders Federation, before welcoming Britain’s biggest building society Nationwide in October 2021 and now YBS’s Accord Mortgages. Since launch, Deposit Unlock has also steadily increased the number of participating house builders with 24 firms representing more than 60% of new build construction now signed up and more in the process of joining.