Deposit Unlock Mortgage Schemes

Q: How Does Deposit Unlock Work?

- Buyers contribute a 5% deposit – Instead of needing 10-15%, you only need to save 5% of the property’s value. - Lenders offer 95% mortgages – Thanks to backing from housebuilders, lenders provide low-deposit mortgage deals at competitive interest rates. - You buy a new-build home – The scheme is only available on properties from participating housebuilders.

Q: Who Qualifies for Deposit Unlock?

To use the scheme, you must meet the following criteria: - ✔ Be a first-time buyer or home mover – The scheme is not limited to first-time buyers, making it a great option for those moving up the property ladder. - ✔ Have a 5% deposit – You must be able to contribute at least 5% of the purchase price. - ✔ Be buying a new-build home – The property must be from a participating housebuilder. - ✔ Meet mortgage affordability checks – As with any mortgage, lenders will assess your income, credit score, and outgoings to ensure you can afford repayments.

Q: Is Deposit Unlock the Right Choice for You?

Deposit Unlock is a great option if: - ✔ You have a 5% deposit but want better mortgage deals than standard 95% mortgages. - ✔ You are happy to buy a new-build home from a participating developer. - ✔ You want to get on the property ladder sooner rather than later. It may not be the best option if: - ✖ You want to buy a second-hand home or a property from a non-participating housebuilder. - ✖ You can afford a larger deposit, which could give you access to even better mortgage rates.

Jun 27, 2025
4 min read

Making Homeownership More Accessible in 2025

Think you need a huge deposit to buy a home? The Deposit Unlock scheme allows first-time buyers and home movers to secure a mortgage with just 5% deposit. Learn how it works, who qualifies, and why it could be the perfect solution for you.

For many people, saving for a house deposit is one of the biggest barriers to homeownership. With rising property prices, pulling together a 10% or 15% deposit can feel impossible. But what if you could buy a home with just a 5% deposit?

That’s where the Deposit Unlock scheme comes in. It’s a new initiative designed to make homeownership more affordable for first-time buyers and home movers across the UK. At Endurance Mortgages, we’re here to explain how it works, who qualifies, and whether it could be the right choice for you.

What Is the Deposit Unlock Scheme?

Deposit Unlock is a low-deposit mortgage scheme that allows buyers to purchase a new-build home with just 5% deposit. The scheme was developed by UK housebuilders and lenders to help more people get on the property ladder without needing a large upfront deposit.

The scheme is available for new-build homes only, and participating developers work with lenders to offer competitive mortgage deals to buyers. Unlike previous government-backed schemes, Deposit Unlock is funded by housebuilders, which means it is expected to be more widely available.

How Does Deposit Unlock Work?

Buyers contribute a 5% deposit – Instead of needing 10-15%, you only need to save 5% of the property’s value.
Lenders offer 95% mortgages – Thanks to backing from housebuilders, lenders provide low-deposit mortgage deals at competitive interest rates.
You buy a new-build home – The scheme is only available on properties from participating housebuilders.

The biggest benefit is that buyers can access better mortgage deals than standard 95% mortgages, making homeownership more affordable.

Who Qualifies for Deposit Unlock?

To use the scheme, you must meet the following criteria:

✔ Be a first-time buyer or home mover – The scheme is not limited to first-time buyers, making it a great option for those moving up the property ladder.
✔ Have a 5% deposit – You must be able to contribute at least 5% of the purchase price.
✔ Be buying a new-build home – The property must be from a participating housebuilder.
✔ Meet mortgage affordability checks – As with any mortgage, lenders will assess your income, credit score, and outgoings to ensure you can afford repayments.

What Are the Benefits of Deposit Unlock?

1. Lower Deposit Requirement

Saving a 5% deposit is much easier than the traditional 10-15%, helping buyers purchase a home sooner.

2. Competitive Mortgage Rates

Many standard 95% mortgages come with higher interest rates, but because housebuilders support the scheme, lenders can offer better deals than usual.

3. Not Just for First-Time Buyers

Unlike schemes such as Help to Buy (which closed in 2023), Deposit Unlock is open to home movers too, making it easier for existing homeowners to upgrade.

4. Available Nationwide

Since the scheme is run by housebuilders, it is not limited to a specific region, making it accessible across the UK.

5. No Government Involvement

Unlike previous low-deposit schemes, Deposit Unlock is not funded by the government, meaning there are no repayment or equity loan requirements.

What Are the Potential Downsides?

While Deposit Unlock is a great option for many buyers, there are a few things to consider:

Limited to new-build homes – If you want a second-hand property, you’ll need to look at other mortgage options.
Not all lenders participate – Currently, only selected mortgage providers offer Deposit Unlock deals.
Higher mortgage repayments – With a 95% mortgage, your monthly repayments may be higher compared to those with a larger deposit.

How to Apply for a Deposit Unlock Mortgage

Find a participating housebuilder – Look for a new-build property that is eligible for the scheme. Many major developers, including Barratt Homes and Persimmon, offer Deposit Unlock.
Speak to a mortgage broker – A broker like Endurance Mortgages can help you find lenders offering Deposit Unlock mortgages and check your eligibility.
Get a mortgage agreement in principle – Before making an offer, your lender will assess your finances to ensure you qualify.
Reserve your home – Pay a reservation fee to secure your chosen property.
Complete the mortgage application – Submit your mortgage application with supporting documents.
Move into your new home – Once the mortgage is approved, contracts are signed, and your purchase is complete.

Is Deposit Unlock the Right Choice for You?

Deposit Unlock is a great option if:

✔ You have a 5% deposit but want better mortgage deals than standard 95% mortgages.
✔ You are happy to buy a new-build home from a participating developer.
✔ You want to get on the property ladder sooner rather than later.

It may not be the best option if:

✖ You want to buy a second-hand home or a property from a non-participating housebuilder.
✖ You can afford a larger deposit, which could give you access to even better mortgage rates.

Final Thoughts

Buying a home with a small deposit doesn’t have to be impossible. The Deposit Unlock scheme makes homeownership more accessible by offering low-deposit mortgages with better rates than standard 95% deals. Whether you’re a first-time buyer or a home mover, this scheme could help you buy a new-build home sooner and more affordably.

Want to find out if Deposit Unlock is right for you? At Endurance Mortgages, we can guide you through the process and help you secure the right mortgage deal. Contact us today to explore your options.

Important Notice:

This article is for informational purposes only and does not constitute financial advice. Always seek professional advice before purchasing mortgage products.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.