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 the government’s Help to Buy 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, with reduced risk exposure.

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.

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 managements fees. In addition, the scheme offers capital relief eligibility.

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.