Barratt Redrow and Persimmon Homes, working with real estate asset manager QSix and mortgage lender Ahauz, have launched the Rezide Equity Loan.
Rezide is a privately funded home equity loan for new-build properties, stepping in after the Government’s Help to Buy equity loan ended in 2023.
With Ahauz as the Financial Conduct Authority (FCA)-regulated lender, Rezide is a second-charge loan aimed at people who have struggled to buy a new-build home due to deposit constraints.
Under the Rezide scheme, buyers need a minimum 5% deposit.
The Rezide equity loan covers 15% of the property’s value, with a minimum loan of £15,000 and a maximum of £100,000.
Buyers get the remaining up to 80% from a mortgage with Barclays or TSB.
The repayment term cannot be longer than 40 years.
The interest rate on the Rezide loan is fixed for the full term.
Repayment is based on 15% of the home’s value at the time of repayment, as determined by an independent valuation, plus fees.
Rezide is only available on qualifying new-build homes in England and Wales from participating builders, including Barratt Redrow and Persimmon.
Applications for Rezide must go through a FCA-authorised mortgage intermediary, who will check affordability and provide advice.
Homebuilders are not allowed to give financial advice or accept applications.
Barclays and TSB are supporting the scheme as mortgage providers.
