Bluestone Mortgages will increase its support for first-time buyers by participating in the Deposit Unlock scheme from 2024.
This move, in collaboration with Gallagher Re, a global reinsurance broker, and the Home Builders Federation (HBF), positions Bluestone Mortgages as the first complex credit lender to provide a 95% loan-to-value (LTV) mortgage for new builds through this initiative.
Aiming for an early 2024 launch, this new product is designed to assist the rising number of first-time buyers struggling to enter the property market, especially after the discontinuation of the Help-to-Buy scheme.
Deposit Unlock is an innovative mortgage guarantee scheme that allows borrowers to secure a new-build home with just a 5% deposit. Bluestone Mortgages intends to leverage its expertise in specialist lending to make this scheme accessible to first-time buyers who face challenges securing finance from mainstream lenders.
Reece Beddall, sales and marketing director at Bluestone Mortgages, commented: “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 for 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, said: “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.”
