Newcastle Building Society has announced the first completions in the UK under the industry-led Deposit Unlock scheme.

The first purchases completed in November, including a property in North Tyneside which was introduced by Midlands-based advisers New Homes Mortgage Services in Cannock.

The Deposit Unlock mortgage indemnity scheme was developed by the Homes Builders Federation and reinsurance broker Gallagher Re to provide low deposit borrowers greater access to 5% deposit mortgages on new-build properties.

After a regional pilot with selected developers, Newcastle Building Society led the national roll out of Deposit Unlock in September and a further expansion in the number of developers involved in the scheme is expected later this year.

Stuart Miller (pictured), chief customer officer at Newcastle Building Society, said: “We’re thrilled that the first completions under Deposit Unlock have taken place. They mark a significant milestone for all the parties involved who have worked so hard on the scheme since it was first conceived and shows what the industry can achieve through a spirit of collaboration and innovation.

“The fact that families are now happily living in homes purchased through Deposit Unlock is cause for celebration and I’m so proud that we’ve been at the forefront of a truly innovative scheme to support low deposit borrowers achieve that dream of owning their own home.”

After Newcastle Building Society expanded its offer in September, the lender enhanced its Deposit Unlock offering to reflect the national scope of the scheme by reducing rates and increasing the maximum purchase price for its Deposit Unlock purchases from £330,000 to £600,000.

Anthony Dixon, mortgage and protection advisor at New Homes Mortgage Services in Cannock, said: “The Deposit Unlock scheme is going to be beneficial for many applicants because this helps them get on the ladder with a 5% deposit, especially since the help to buy price caps have been introduced. Without this initiative, my clients would have needed to raise another 5% to be able to purchase with this new build property so it was a great option for them.”