Under the new Deposit Unlock scheme, the society has announced that it has launched a range of 5% deposit mortgages for buyers of new-build properties.
The scheme will initially be available as a pilot on selected plots in the northeast of England through four participating housebuilders; Barratt Homes, Bellway, Keepmoat and Vistry. As the first lender in the scheme, Newcastle Building Society has announced a range of mortgage rates under Deposit Unlock, starting at 3.50% for a two-year fixed-rate mortgage. The scheme will roll out to the rest of the UK in the coming months.
Andrew Haigh, chief executive at Newcastle Building Society, said: “For many people, homeownership can feel out of reach when a large deposit is required, so we need to do more to increase access to low-deposit mortgage products.
“In particular, people looking to buy new-build homes need new options and we recognise there is an urgent need for more homes to be built, so we’re pleased to be working with the Home Builders Federation to find an innovative solution. By being the first lender to adopt the scheme we can help increase homebuyer choice and support the supply of new homes brought to the market.”
Stewart Baseley, executive chairman of Home Builders Federation, said: “Ensuring people can buy a new build home is key to the industry’s ability to deliver the government’s housing ambitions.
"Help to Buy has played a significant role in supporting increases in housing supply in recent years and has turned homeownership dreams into reality for hundreds of thousands of households. However, with the new Help to Buy scheme now less accessible in some regional markets including many parts of northern England, and with the overall programme due to end in 2023, the industry is striving to develop a sustainable solution to help more prospective buyers onto the housing ladder.”
