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 £830,000), 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 the mortgage broker is an important component in Deposit Unlock

It is recognised amongst all Deposit Unlock stakeholders that mortgage intermediaries are a key link in the distribution chain, and can play an important role in helping first-time buyers and other borrowers to secure high LTV mortgages—particularly at a time when house prices and mortgage rates are rising.

Throughout the project development, the mortgage broker community has been aware of the progress of Deposit Unlock through the involvement of the HBF in various broker conferences. And, more directly, Gallagher Re has undertaken to engage with and prepare all brokers likely to be involved with specific house builder participation.

In the case of the live lenders, Gallagher Re hosted a number of webinars in order to get the key messages and changes to the customer journey convened to these key intermediaries. These webcasts were aimed at bringing them up to speed on the Deposit Unlock low-deposit mortgage proposition, the Deposit Unlock lender mortgage products, the operation process, and what was required of them.

The feedback from brokers has been overwhelmingly positive, and we plan to utilise the same approach for a national roll out.

What are the next steps to find out more?

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.