Perenna has joined the Deposit Unlock scheme to support first-time buyers onto the property ladder, with the official launch date marked for mid-April.
Perenna the latest lender to join the scheme, following Nationwide, YBS Accord Mortgages, Bluestone Mortgages, and Newcastle Building Society.
The Deposit Unlock scheme, established by reinsurance broker Gallagher Re and the Home Builders Federation (HBF) in November 2021, allows first-time buyers and existing homeowners to purchase a new-build home with a 5% deposit at competitive interest rates and aims to replace the Government’s now ended Help to Buy Mortgage Guarantee scheme.
Buyers using the scheme will be able to access Perenna’s flagship flexible long-term fixed rate mortgage products to purchase new-build homes.
Perenna can lend up to six-times an individual’s income, and will also accept up to a 5% deposit contribution from developers who offer this incentive.
This means customers could buy with zero deposit where the builder is contributing the full 5%.
Perenna’s Deposit Unlock 90.01% to 95% loan-to-value (LTV) mortgages are priced from 5.92%.
Colin Bell, founder and COO of Perenna, said: “We’re thrilled to announce our collaboration with Deposit Unlock, a partnership aimed at making homeownership more accessible to everyone.
“Whether your customer is a first-time buyer looking to step onto the housing ladder or a second-time buyer seeking new opportunities, Perenna is here to make a difference in their outcome.
“Affordability remains a struggle for many buyers and especially first-time buyers, and through this partnership and our consumer-friendly affordability boost mortgage we will help aspiring homeowners realise their dream of homeownership and living in the home they really want.
“By enabling deposit contributions from developers, we’re opening doors to the possibility of zero deposits for some customers. This partnership is a winner for aspiring homeowners of new build homes.”
Freddie Scarratt, head of UK mortgage at Gallagher Re, added: “Given recent history, Perenna’s long-term fixed rate offering is a great addition to the Deposit Unlock scheme, offering peace of mind on monthly payments to help borrowers achieve their homeownership dream.”
David O’Leary, executive director at HBF, concluded: “The dream of home ownership has become an increasingly difficult one to achieve in recent years with deposit requirements beyond the reach of many.
“The resultant lack of demand has impacted the supply of new homes, with developers unable to invest in new sites without any certainty in the market.
“Deposit Unlock was developed jointly by lenders and developers to address the dearth of affordable mortgage products and so enable people to buy.
“Perenna’s addition to the Deposit Unlock stable will broaden the offering to a wider market, enabling more people to buy and so more homes to be delivered.”
