On your own
Use Deposit Unlock to buy a new-build at 95% LTV
With the Deposit Unlock scheme, you could purchase a new-build property from a participating home builder with just a 5% house deposit.
Suitable for buyers & movers
Buy a new-build with a 5% deposit
New-build purchases only
How does it work?
Lenders typically don’t offer 95% mortgages on new-builds, as they are viewed as more risky. This scheme allows you to buy one with just a 5% deposit. That’s because the housebuilder reduces the lender’s risk by insuring the mortgage.
Deposit Unlock is a relatively new scheme, and is only available through a few lenders. Plus, it can only be used with participating housebuilders and on eligible developments or properties.
Things to consider
All mortgages have risks and benefits. Here are some key factors you should know before applying for the Deposit Unlock scheme.
What are the benefits?
Buy a new build with a small upfront deposit
Lenders typically require a 15%-25% deposit on new-build properties. With Deposit Unlock, you could buy a new build home with just a 5% deposit, meaning that you might be able to buy sooner, or buy a more expensive property.
Access to a wide range of house builders
There are 31 house builders offering the Deposit Unlock scheme - so you’ll have a range of choices when looking for a suitable home. However, not every house they build will be eligible for the scheme.
Buy a brand new home
There are many benefits of buying a new-build. You’ll typically have warranty on all white goods, and you can make significant savings due to excellent energy efficiency.
Risks and considerations
Limited choice of mortgage lenders
There are only three lenders that currently support the Deposit Unlock scheme. This means you’ll have limited choice when choosing a suitable mortgage, and you might not have access to the best interest rates.
The mortgage amount is capped at £750,000
You cannot buy a home that requires a mortgage larger than £750,000, which might be limiting in areas like London or the South West.
Be wary of the new build premium
As the property is no longer ‘brand new’ once you’re in it, the value of a new build can initially fall. If you don’t plan to live in the home for a long time, this means you might end up selling the home for less than you bought it for.
Got questions? We’ve got answers
See all FAQsFrequently asked questions
The application process
Get into your very own home in 4 simple steps
Make a Tembo plan
In under 10-minutes we’ll check your eligibility for Deposit Unlock as well as our other buying schemes. Plus you’ll get a personalised mortgage recommendation including interest rates and repayments.
Talk to an expert
Book a call with our mortgage experts to complete the qualification process. We’ll cover any questions you might have about Deposit Unlock, and collect more information about your situation.
Find a property
Now it’s time to find a home! Deposit Unlock is available with over 30 house builders, on selected developments and properties. Your Tembo advisor will support you during the house hunt.
Make home happen
Once you’ve found an eligible property, we’ll prepare & submit your mortgage application. We’ll then liaise with the developer and your solicitors to ensure a smooth purchase.
Other schemes you might like
Explore our other buying schemes to discover alternative ways to buy.
Part buy part rent
Shared Ownership
Buy a share of a home, and pay rent on the rest. Over time, you can staircase to full ownership.
See detailsWith a guarantor
Deposit Loan
Boost your deposit with help from family or friends in return for a share of your home.
See detailsFamily remortgage
Deposit Boost
Unlock a gifted deposit from a loved one’s property to create a house deposit from scratch or top up your existing deposit.
See detailsLearn more
Confused about mortgages? Read our guides for expert tips on saving, buying and the market.
Other mortgage schemes
You can be snug in your very own home in 4 simple steps