Newcastle Building Society, which was the first lender to support the Deposit Unlock scheme, has made changes to its Deposit Unlock product range.

Changes include a new two-year fixed rate, an increase to the maximum purchase price and the addition of product incentives.

First launched by Newcastle Building Society in June, Deposit Unlock gives low-deposit buyers more borrowing options by putting a new-build home with a deposit of 5% in reach.

Deposit Unlock is backed by the Home Builders Federation and supported by selected national home builders. 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.

The Society has increased the maximum purchase price from £330,000 to £600,000.

A two-year fixed rate is now available at 2.79% (3.8% APRC) which is a 0.71% reduction on the previous rate. And a cut of 0.56% has been applied to the five-year fixed rate, which is now available at 3.19% (3.7% APRC).

Both products come with zero product fees to pay and by way of additional incentive, the lender has introduced a free standard valuation for properties up to £500,000 and £500 cashback.

An early repayment change of 2% until 28.02.2023 and 1% until 29.02.2024 is payable on the two-year product, and the five-year product attracts an early repayment charge of 5% until 28.02.2023, 4% until 29.02.2024, 3% until 28.02.2025, 2% until 28.02.2026 and 1% until 28.02.2027.

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “Deposit Unlock is true innovation and gives low deposit buyers a great option on new builds. As the first lender to bring the scheme to market and roll out nationally, it means we’re also the first to respond to broker feedback, refining the proposition to make it an even more attractive option for customers and broaden access to the product range across the country.”