The deposit Unlock scheme has been introduced to help first time buyers and home movers buy a new build property with a 5% deposit.
What is the deposit unlock scheme?
The Deposit Unlock scheme allows you to purchase a new build property with as little as 5% deposit. Prior to this being introduced the minimum deposit needed would have been 10 or 15% deposit for a new build house.
How does the Deposit Unlock scheme work?
Mortgage lenders often require a larger deposit when a new build property is being purchased.
The Deposit Unlock scheme helps get around this by the home builder paying for an insurance to cover the mortgage. The aim of this is to give the mortgage lender extra security and make them more comfortable, allowing them to offer you the option of a 5% deposit.
Who can apply for the deposit unlock scheme?
To be eligible for this scheme you need to:
- Be a first-time buyer or moving home
- Have at least 5% deposit
- Buy a new build, not a pre-owned property
- Purchase the property from a builder offering the scheme.
Do I have to be a first time buyer?
No you do not. You can still use this scheme if you are or have previously been a home owner, as long as you are purchasing a new build home. You must also be purchasing the property from a builder offering the scheme.
What property developers are currently offering the deposit unlock scheme?
There will be many different developers offering this scheme and you will need to enquire to the development you are interested in to confirm if they are backing this initiative.
We are currently working with Pearce Fine Homes who are supporting this scheme.
If you are looking at buying a new build home or would like more information, then get in touch today.
Tom
Mortgage Advisor
01752 905011
info@completemortgageadvice.co.uk
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
