New scheme launches for first-time buyers

A new scheme has been launched designed to make it easier for first-time buyers to buy a new-build home. Deposit Unlock, a joint initiative from the Home Builders Federation and the insurer Gallacher Re, aims to encourage lenders to offer more flexibility. A pilot involving Newcastle Building Society and a handful of homebuilders has been running in the northeast, and the scheme is set to go live next month. With Deposit Unlock the housebuilder will pay to insure the mortgage, making it a less risky deal for the lender. According to the Home Builders Federation, 17 housebuilders, which together account for about 60% of all new homes, will be involved, and more lenders are expected to join.

The Sunday Times (10/10/2021)