Deposit Unlock is a mortgage scheme that lets buyers purchase a new-build home with a deposit of just 5%, with the rest financed through a 95% mortgage on standard market rates. It was developed by the Home Builders Federation and major lenders specifically to fill the gap left by the end of Help to Buy in March 2023.
The scheme works through insurance backed by the housebuilder, which allows lenders to offer 95% loan-to-value mortgages on new-build homes that they would otherwise treat as higher risk.
This guide covers how Deposit Unlock works, who is eligible, which lenders and builders participate, how it compares to Help to Buy, and the genuine pros and cons.
What Is Deposit Unlock
Deposit Unlock is a mortgage indemnity scheme for new-build homes in the UK. It allows lenders to offer 95% loan-to-value mortgages on new-build properties — both houses and flats — with the additional risk covered by insurance funded by the housebuilder.
The key features of the scheme:
- 5% minimum deposit required from the buyer
- 95% mortgage at standard market rates (not subsidised)
- No government involvement — purely private sector arrangement
- Available on both houses and flats unlike Help to Buy’s restrictions
- Maximum purchase price of £750,000 for most lenders, with some variations
- Available to both first-time buyers and home movers — not restricted to first-time buyers only
The scheme launched in summer 2021 and has expanded significantly since then. By 2026, the major UK new-build
housebuilders and most high street lenders participate in some form.
How It Works (Step by Step)
The Deposit Unlock process follows a defined sequence from reservation through to completion.
The step-by-step process:
- Step 1: Choose a participating housebuilder — confirm the developer offers Deposit Unlock on the specific development and plot
- Step 2: Reserve the plot — pay the standard reservation fee (typically £500 to £2,000) and confirm the Deposit Unlock arrangement with the sales team
- Step 3: Apply for a Deposit Unlock mortgage — approach a participating lender directly or through a mortgage broker. The application is assessed on standard affordability criteria
- Step 4: Mortgage offer issued — the lender confirms the mortgage offer at standard market rates with the 5% deposit
- Step 5: Conveyancing and legal work — solicitors handle the contract exchange and completion as normal for a new-build purchase
- Step 6: Pay the 5% deposit on exchange of contracts — typically due 28 days after reservation
- Step 7: Completion and move-in — the 95% mortgage advance arrives at completion alongside your 5% deposit, completing the purchase
The buyer’s experience is broadly similar to a standard mortgage purchase. The Deposit Unl
ock arrangement is processed in the background between the lender and the housebuilder through the indemnity insurance.
Eligibility and Criteria
Deposit Unlock has specific eligibility requirements that need to be met before the scheme can be applied.
Property requirements:
- New-build only — the property must be newly constructed by a participating housebuilder
- Maximum purchase price of £750,000 for most lenders (some allow up to £600,000)
- Houses and flats both eligible subject to lender-specific rules on flats
- Must be the buyer’s main residence — buy-to-let and second homes are not eligible
Buyer requirements:
- UK resident — the buyer must be a UK resident with the right to buy property in the UK
- 5% minimum deposit from genuine savings (sources may need documentation)
- Standard affordability assessment — the lender applies normal income and credit checks
- Both first-time buyers and home movers are eligible
- Family help allowed — gifted deposits from family members typically accepted with appropriate documentation
What the scheme does not cover:
- Existing housing stock (only new-build)
- Buy-to-let purchases
- Second homes or holiday properties
- Self-build or custom-build properties (unless specifically arranged)
- Properties above the lender’s maximum price threshold
Which Lenders and Builders Offer Deposit Unlock
By 2026, the scheme has expanded to include most major UK mortgage lenders and the largest housebuilders.
Major lenders participating in Deposit Unlock:
- Accord Mortgages
- Nationwide Building Society
- Newcastle Building Society
- Skipton Building Society
- Halifax (selective participation)
- Other regional building societies
The lender list changes — some lenders enter the scheme and others adjust their participation based on appetite. The participating lenders publish their current Deposit Unlock product range on their websites.
Major housebuilders participating:
- Barratt Developments (Barratt Homes, David Wilson Homes)
- Bellway Homes
- Berkeley Group
- Bovis Homes
- Crest Nicholson
- Persimmon Homes
- Redrow Homes
- Taylor Wimpey
- Vistry Group (Bovis, Linden, Countryside)
Most large UK housebuilders participate, but availability varies by development. Confirm with the specific development’s sales team before assuming the scheme is available on the plot you are considering.
Deposit Unlock vs Help to Buy
For buyers familiar with Help to Buy (which closed to new applicants in October 2022 with the final scheme ending in March 2023), Deposit Unlock is structurally different in several important ways.
The key differences:
- Government involvement: Help to Buy was a government-backed equity loan; Deposit Unlock is purely private sector insurance
- Equity loan vs full mortgage: Help to Buy involved a separate 20% (40% in London) equity loan from the government; Deposit Unlock uses a single standard 95% mortgage
- Interest rates: Help to Buy equity loan was interest-free for the first 5 years; Deposit Unlock mortgages are at standard market rates from day one
- Future shared ownership: Help to Buy required either repaying the equity loan or sharing future capital growth with the government; Deposit Unlock has no such requirement
- Eligibility scope: Help to Buy was first-time buyers only; Deposit Unlock is open to both first-time buyers and home movers
- London cap: Help to Buy London had a £600,000 cap; Deposit Unlock typically £750,000
The practical implication: Deposit Unlock is more straightforward and gives the buyer cleaner ownership from the start, but the buyer pays standard market interest rates rather than the interest-free equity loan that Help to Buy offered for 5 years.
Read also- mortgage loan for investment property
Pros and Cons of Deposit Unlock
Pros:
- Genuine 5% deposit access to new-build market that would otherwise require 10 to 25% deposit
- No future equity sharing with government or scheme provider
- Available to home movers as well as first-time buyers
- Higher purchase price ceiling than Help to Buy at most lenders
- Standard mortgage terms — buyer owns 100% of the property from day one
- Simpler structure than Help to Buy’s equity loan plus mortgage combination
Cons:
- Standard market interest rates — no subsidised rate like Help to Buy’s interest-free period
- New-build only — does not help buyers wanting to purchase existing housing stock
- Higher monthly payments than a larger deposit purchase due to the higher loan-to-value
- Limited lender choice compared to standard mortgages — only participating lenders
- Higher loan-to-value risk if property values fall significantly in the first few years
- Builder participation varies — not all developments offer the scheme
For MoneyHelper guidance on 95% mortgages and first-time buyer support, check: MoneyHelper — first-time buyer guidance
When Deposit Unlock Makes Sense
Deposit Unlock works particularly well for specific buyer situations.
Good fit for:
- First-time buyers with limited deposit who want a new-build home
- Home movers transitioning between properties where most of their existing equity is tied up
- Buyers who specifically want new-build characteristics (warranties, modern specifications, low maintenance)
- Buyers comfortable with the higher monthly payments of a 95% mortgage at current rates
Less suitable for:
- Buyers wanting to purchase existing or older housing stock
- Buyers with the option to put down 10% or more deposit, who get better rates on lower LTV
- Buy-to-let investors (not eligible)
- Buyers prioritising the lowest possible monthly payments
For London property specifically, the £750,000 price cap on Deposit Unlock excludes much of the prime central London market but works well for outer London new-build developments where prices typically remain within the cap.
For more guidance on buying property in London, see our complete buying-a-home guide.
For Home Builders Federation official Deposit Unlock information, check: Home Builders Federation — Deposit Unlock
Conclusion
Deposit Unlock is a private sector mortgage indemnity scheme that allows buyers to purchase a new-build home with just a 5% deposit and a 95% mortgage at standard market rates. It was developed by the Home Builders Federation and major lenders to fill the gap left by Help to Buy. The scheme is available to both first-time buyers and home movers, covers new-build houses and flats up to £750,000, and operates through a single standard mortgage rather than the equity loan structure of Help to Buy. Major housebuilders including Barratt, Bellway, Berkeley, Persimmon, Redrow, and Taylor Wimpey participate, along with major lenders including Nationwide, Accord, Skipton, and others. The scheme works best for buyers who want new-build properties and have a 5% deposit but limited additional savings — for buyers with larger deposits or wanting existing housing stock, other mortgage routes typically produce better outcomes.
Frequently Asked Questions
What is Deposit Unlock?
Deposit Unlock is a mortgage scheme allowing buyers to purchase a new-build home with just a 5% deposit and a 95% mortgage. The additional risk is covered by insurance funded by the housebuilder, with no government involvement.
Who is eligible for Deposit Unlock?
Both first-time buyers and home movers are eligible if they have a 5% deposit, are UK residents, meet standard mortgage affordability checks, and are buying a new-build home for their main residence from a participating housebuilder. Buy-to-let and second home purchases are not eligible.
How is Deposit Unlock different from Help to Buy?
Deposit Unlock is a single standard mortgage with no government involvement, while Help to Buy was a government equity loan combined with a mortgage. Deposit Unlock charges standard market interest rates from day one; Help to Buy’s equity loan was interest-free for 5 years but required equity sharing on resale.
Which lenders offer Deposit Unlock?
Major participating lenders include Nationwide, Accord Mortgages, Newcastle Building Society, Skipton Building Society, and Halifax, alongside other regional building societies. The list updates regularly, so check participating lenders directly for current product availability.
