What is Deposit Unlock?

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 £833,000), 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 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, 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.

Will it replace 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.

Who owns the Deposit Unlock scheme?

The HBF owns the Deposit Unlock scheme—it belongs to the housebuilding 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. We 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.

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.

What are the next steps to join?

Please click on the CONTACT US button below and complete the short enquiry form that appears. In the Questions and Comments section, please put Deposit Unlock. After you have submitted the form a member of our team will then get back to you.