Buying your first home or moving up the property ladder can feel like a pipe dream—especially when you’re staring down the barrel of a 10–20% deposit. But if you’re keen to buy a new build and struggling to save up enough cash, Deposit Unlock might be the solution you’ve been waiting for.
This guide breaks down exactly what Deposit Unlock is, how it works, who it’s for, and why it might be the key to owning your next home with just a 5% deposit.
What is Deposit Unlock?
Deposit Unlock is a home-buying scheme developed by the Home Builders Federation and supported by major house builders across the UK. It allows both first-time buyers and home movers to purchase a new-build property with just a 5% deposit, while still securing a competitive mortgage rate.
Let’s say you’ve found your dream new-build home priced at £300,000. Instead of needing £30,000 (10%) or even £60,000 (20%) for a deposit, you could move forward with just £15,000—thanks to Deposit Unlock.
Check Deposit Unlock website for authoritative information and updates on participating developers and lenders.
How Does Deposit Unlock Work?
When you buy a property under this scheme, the developer pays into an insurance policy for your lender. This insurance helps protect the mortgage provider from losses if you default, which makes them more comfortable offering you a mortgage—even with only 5% down.
Because of this backing, you can often access better interest rates than with a standard high loan-to-value (LTV) mortgage. It’s a win-win: less deposit from you, less risk for the bank.
Who Can Use Deposit Unlock?
The scheme is open to anyone looking to buy a new-build home in the UK to use as their main residence. Unlike Help to Buy, which was restricted to first-time buyers, Deposit Unlock welcomes all buyer types—as long as it’s not for a buy-to-let or second home.
So whether you’re a single professional renting in London or a family outgrowing your current flat, this scheme could be your route to ownership.
What Types of Properties Qualify?
There are some limitations. Deposit Unlock can only be used to purchase:
- Houses
- Two-bedroom flats
You can’t use it for studios or one-bedroom apartments. Also, the developer must be part of the scheme. Big names like Taylor Wimpey, Redrow, and Bellway are in—so you’ll still have a wide range of properties to choose from.
Check Home Builders Federation to let users explore participating developers.
Which Lenders Offer Deposit Unlock Mortgages?
Several mortgage providers support the scheme, including:
- Nationwide Building Society
- Accord Mortgages
- Bluestone Mortgages
- Perenna
More are expected to join in the near future, expanding access to even more buyers.
How Does Deposit Unlock Compare to Help to Buy?
Deposit Unlock was partly introduced as a response to the end of Help to Buy in 2022. While both schemes allowed you to purchase with just 5% down, Help to Buy required you to take a government equity loan, repayable later and potentially more expensive in the long run.
With Deposit Unlock:
- There’s no equity loan
- You own 100% of your home from day one
- Your mortgage is for up to 95% of the property value
Yes, your repayments may be higher each month—but you’re not repaying a second loan to the government, just your mortgage.
How is it Different From the 95% Mortgage Guarantee Scheme?
While both allow 5% deposits, the Mortgage Guarantee Scheme is backed by the government and applies to both existing and new-build properties. Deposit Unlock is private-sector backed and applies only to new builds.
Moreover, mortgage options are often more attractive under Deposit Unlock because of the lower perceived risk to lenders.
Is Deposit Unlock Right for You?
There’s no catch, but the scheme might not suit everyone. For example:
- You’ll need to find a participating developer
- Only certain types of properties qualify
- You’ll still need to meet standard lending criteria (income, affordability, credit score, etc.)
That said, for many aspiring homeowners, especially in high-cost areas like London, Deposit Unlock offers a rare and valuable lifeline.
Conclusion
So, what is Deposit Unlock? It’s more than just a housing scheme—it’s a bridge for buyers who are ready to move but held back by sky-high deposit requirements. Whether you’re stepping onto the property ladder or climbing higher, this could be the helping hand that finally gets you there.
