Deposit Unlock Scheme

The Deposit Unlock Scheme is designed to strip away the stress of saving up a hefty deposit, allowing both first-time buyers and existing home movers to secure a 95% loan-to-value (LTV) mortgage on a new-build property.

Here’s how it all works. 

What Is the Deposit Unlock Scheme?

Deposit Unlock is a game-changing partnership between UK house builders, mortgage lenders, and the insurance industry. Launched in 2021, it acts as a private-sector replacement for the popular Help to Buy equity loan scheme, which has now ended in most parts of the UK*.

The core of the scheme is pretty simple: it’s built to make lenders feel secure when offering high loan-to-value (LTV) mortgages on new homes. Traditionally, lenders require larger deposits on new builds to protect themselves against the risk that the property may drop in value immediately after purchase.

How Is This Possible?

Under Deposit Unlock, participating home builders pay an insurance premium to secure mortgage indemnity protection. This insurance is provided by a reinsurance firm, which essentially backs the lender by guaranteeing a portion of the loan (up to 35% in some cases) if the buyer defaults and the lender incurs a loss. 

This risk reduction gives lenders the confidence to offer you a competitive 95% mortgage rate that might otherwise only be available with a larger deposit.

(*Help to Buy is still available in Wales)

Who Is Eligible for a Deposit Unlock Mortgage?

One of the scheme’s biggest advantages is that it’s inclusive, designed for more than just first-time buyers. Whether you're a first-timer or a home mover looking to upgrade, you could be eligible, provided you meet a few straightforward criteria:

• Buyer status: You must be a first-time buyer or an existing homeowner looking to move house.

• Deposit size: You need a minimum deposit of 5% of the property's purchase price.

• Property type: The home must be a new-build house or apartment purchased from a participating developer.

• Usage: The property must be used as your main residential home. It’s not available for second homes or buy-to-let investment properties.

• Property value: While some lenders and house builders set their own caps, the scheme is available on properties up to a maximum value of £833,250.

You will also need to meet the lender's specific affordability criteria. This involves passing the standard income, expenditure, and credit checks, just like any other mortgage application.

What Are the Pros and Cons of the Deposit Unlock Scheme?

Every scheme comes with its advantages and trade-offs. Here’s a look at the good and the bad of Deposit Unlock:

Which Mortgage Lenders and House Builders Are Participating?

This is where expert knowledge comes into play, as the Deposit Unlock Scheme relies on an exclusive network. You can't just walk into any bank and ask for a Deposit Unlock mortgage.

The Lenders

Currently, only a small number of lenders offer Deposit Unlock products. The main participating lenders include:

• Perenna

• Bluestone Mortgages

You may find that other lenders join or leave the scheme over time (Nationwide, for instance, has previously participated), which is why dealing with a specialist mortgage broker is essential. These mortgages are typically only available via a broker (like us!), giving you exclusive access to these deals.

The House Builders

The list of participating developers is growing constantly, meaning your choice of new homes is vast. The scheme involves over 80 major UK builders, including prominent names such as Barratt Homes, Taylor Wimpey, Redrow, and Vistry Group, as well as numerous reputable smaller developers.

If you have a specific builder in mind, the first step should always be to check their website or contact their sales team to confirm they are registered with the Deposit Unlock Scheme for your chosen development.

Your Step-by-Step Guide to Buying with Deposit Unlock

Ready to make a move? The process is surprisingly simple, especially with our dedicated mortgage team ready to guide you through from start to finish.

Step 1: Speak to a Mortgage Broker

Before you even start house hunting, talk to us. We’ll assess your income, outgoings, and credit score to find out exactly how much you can afford to borrow. We’ll look at all the participating lenders and pinpoint the one most likely to approve your 95% mortgage application based on your personal financial situation. This is a crucial step that stops you from wasting time applying to the wrong lender.

Step 2: Find Your New Home

Now for the fun part! Once you have an idea of your budget, you need to find a new-build property from a developer who is part of the Deposit Unlock Scheme. You can reserve a plot just like you would with any other new-build purchase.

Step 3: Get the Confirmation Letter

Once your developer confirms that the specific home you want is available through the scheme, they will issue you a Loan Confirmation Letter (or similar document). This letter is key—it confirms your eligibility and the property details, which your mortgage broker will then use to move forward with your application.

Step 4: Submit Your Mortgage Application

Our mortgage team will handle the heavy lifting. We’ll take the Confirmation Letter and submit your full application to the best-suited Deposit Unlock lender. You’ll just need to provide all your supporting documents (payslips, bank statements, ID, etc.), using our online portal, and we’ll manage the rest until you receive your formal mortgage offer.

Can You Use the Deposit Unlock Scheme if You Have Adverse Credit? 

While having some bad credit in your past might make a 95% mortgage more difficult to secure, it’s certainly not impossible.

Lenders using the Deposit Unlock Scheme—especially specialist providers like Bluestone Mortgages or Perenna—often take a more human approach. They understand that a single historic missed payment doesn’t tell the whole story.

If you have minor or historic credit issues, you still have options. Your success will depend on the severity and age of the issue, and, critically, on choosing the right lender.

A 95% LTV product is considered high-risk, so the lender needs to verify that your finances are stable now, despite any previous issues. Our Mortgage Experts have strong relationships with these specialist lenders and know exactly how to package your application to give you the best chance of success.