Bluestone Mortgages is to expand lending to more first–time buyers through the Deposit Unlock scheme.

In partnership with Gallagher Re, global reinsurance broker, and the Home Builders Federation (HBF), Bluestone Mortgages expects to be the first complex credit lender to offer a 95% LTV new build mortgage through the scheme. The lender will launch a new product in early 2024, to support the growing number of disenfranchised first-time buyers currently unable to get onto the property ladder following the withdrawal of Help-to-Buy.

Deposit Unlock is a mortgage guarantee scheme created to help borrowers secure a new-build home with a deposit of only 5%. Bluestone Mortgages will open up the scheme to first-time buyers who cannot secure finance through mainstream lenders.

Reece Beddall, sales & marketing director at Bluestone Mortgages, said: “Following the end of the Help to Buy scheme, those with smaller deposits are finding it increasingly challenging to get onto the property ladder as the increased cost of living limits their power to save or a deposit.

“With this in mind, we’re focused on innovating to find new solutions to help would-be borrowers with lower deposits achieve their homeownership goals. This partnership demonstrates our commitment to supporting disenfranchised first-time buyers with complex credit, as well as helping housebuilders find customers for their properties.”

Freddie Scarratt, head of UK mortgage at Gallagher Re, commented: “Bluestone Mortgages is a fantastic new addition to the Deposit Unlock scheme, as they broaden the potential customer base for the scheme’s house builders. Heading into 2024, consumers need more choice, and Deposit Unlock is delivering that with a new lender and a unique product.

“With over 75 developers now signed up, and with an increasing choice of lenders on board, Deposit Unlock is going from strength to strength, providing a positive impact for all stakeholders. We look forward to welcoming Bluestone Mortgages onboard in the New Year.”

David o’Leary, executive director at HFB, added: “Ensuring people can buy a new build home is key to the industry’s ability to deliver desperately needed new homes. Too many people are unable to realise their ambition of home ownership because they simply can’t afford the deposit required.

“The industry has worked with lenders to develop a sustainable solution that will help more prospective buyers onto the housing ladder, maintain demand and so enable builders to build.

“The addition of Bluestone will increase the availability and awareness of Deposit Unlock and so help more people realise their ambition of owning a high quality, energy efficient new build home.”