Help To Buy
Deposit Unlock

Last updated: 15th January 2024

Deposit Unlock Scheme

The new Deposit Unlock scheme will allow first time buyers buy a new build home with just a 5% deposit. This scheme is only available for certain home builders and through certain lenders.

Mortgage lenders tend to be more cautious when applying criteria to a new build home to protect themselves from the devaluation of the property during the early years. This usually results in you needing a higher LTV product such as a 15% deposit or 25% deposit. However, with the deposit unlock scheme, the house builders pay to insure the mortgages instead, encouraging lenders to offer higher loan to value mortgages on new builds.

As this scheme is only available through certain lenders, it’s important to speak to your mortgage broker at the earliest opportunity. Having already arranged a number of Deposit Unlock mortgages at Future Interests, we’re already aware of the process and what will be required by the lender.

Shared Ownership Scheme

The shared ownership scheme is a government-backed initiative aimed at helping first-time buyers and those who cannot afford to purchase a property outright. It is an alternative to the Help to Buy scheme, offering another route for individuals to step onto the property ladder.

The shared ownership scheme is designed to assist individuals who are unable to afford to buy a property outright but still want to become homeowners. It allows buyers to purchase a share of a property and pay rent on the remaining portion that is owned by a housing association or private developer.

Under the shared ownership scheme, buyers have the opportunity to purchase a share (usually between 25% to 75%) of a property from a housing association or a private developer. The buyer will then pay a subsidised rent on the remaining share of the property that they do not own.

The shared ownership scheme offers an opportunity for individuals to enter the property market with a smaller upfront cost and lower monthly payments. It can be a pathway to homeownership for those who may not qualify for traditional mortgages or find it challenging to save a substantial deposit.

The shared ownership scheme can be a helpful alternative to the Help to Buy scheme. However, it’s essential to keep in mind that the details and eligibility criteria may change over time, so it’s best to check the latest information on the official government websites or consult with a qualified financial advisor for the most up-to-date guidance.

Help to Buy Guidance from Future Interests

If you would like to discuss your mortgage options now that the Help to Buy scheme has ended, be sure to get in touch with the team at the earliest opportunity to plan your route to home ownership. Simply give the team a call on 01227 682869 or click to send a contact form and we will be in touch to arrange your free appointment.