How Deposit Unlock could help you buy a new-build home

Feb 22, 2022
Deposit Unlock for new build homes

Many people are attracted to the idea of buying a light, airy and energy-efficient new-build home. But getting together the deposit you might need to make that exciting move can be a bit of a challenge.

However, with Deposit Unlock you could buy the brand-new home you’ve set your heart on with just a 5% deposit.


So how does it work? And is it the right option for you? We’ve put together some answers to people’s most frequently asked questions.

What is Deposit Unlock?

Traditionally, mortgage lenders have set the minimum deposit for new-build homes at anywhere between 15% to 25%. Deposit Unlock has been devised in collaboration with lenders and the housebuilding industry. It means you could buy a brand-new home with a combination of a 5% deposit and a 95% mortgage.


As Neil Jefferson, Managing Director of the Home Builders Federation says: "Deposit Unlock will help households onto the housing ladder and give developers confidence to invest in new land and labour to build on the massive housing supply increases of recent years." 1

Who can apply for Deposit Unlock?

Designed to help more people than ever realise their ambition of owning a brand-new home, the good news is that Deposit Unlock is available to both first-time buyers and existing homeowners.

How does Deposit Unlock change the mortgage market?

As Deposit Unlock reduces the risk to mortgage providers, more and more of them are likely to start offering 95% mortgages on new homes. As a result, the range of competitive products you’ll have to choose from should steadily increase.

Find out more about Deposit Unlock

How does Deposit Unlock compare to other schemes?

There are other schemes already out there that are also designed to help home-buyers with small deposits. Each one is different to Deposit Unlock in crucial ways.


You may have heard of the Government-backed Help to Buy. Through this scheme, the Government could give you a 5-year interest-free equity loan for up to 20% of the value of the new-build home you want to buy. As a result, you only need to pull together a 5% deposit and secure a 75% mortgage.

So what’s the difference between Help to Buy and Deposit Unlock? Well, while Help to Buy is only available to first-time buyers in England and Wales. Deposit Unlock is available to both first-time buyers and existing homeowners.


Help to Buy has been a successful and popular scheme. However, it will no longer be available from May 2023.

Find out more about Help to Buy

Don’t forget that we also have a range of other offers to help you make your move. Find out more here.

Is Deposit Unlock right for everyone?

As with any scheme designed to help buyers get on the first rung of the property ladder (or move up a step or two), there’s no ‘one size fits all’ solution. However, for anyone who wants to enjoy the advantages of living in a brand-new home, Deposit Unlock is a practical and affordable option worth considering.

How do I apply for Deposit Unlock?

Deposit Unlock is only available through homebuilders, such as Barratt Homes, who have already signed up for the scheme. Applying with us is easy. Simply use the website to search for a new home and get in contact. We’ll then put you in touch with a specialist New Homes Mortgage Adviser who can help you arrange your mortgage using Deposit Unlock.


As the scheme becomes more popular and more lenders get onboard, the range of mortgage providers and options available to you should quickly expand.

Buying a home is one of the biggest events in anyone’s life. Which is why it’s always a good idea to get impartial, expert advice from a specialist Mortgage Adviser.

More help for home buyers

There’s more to buying a home than arranging a mortgage. With so much to consider, it’s good to have a comprehensive source of practical information at your fingertips.

Check out Your Guide to Home Buying


New-build homes come in all shapes and sizes. Barratt are here to help you move forward, with a wide range of homes to suit everyone’s needs. Why not start your search right now?


Find the brand-new home you’re looking for


1 This is Money: ‘Is this the new Help to Buy’ article. Oct 2021.