Global reinsurance broker, Gallagher Re, has welcomed Accord Mortgages as the latest UK lender to join Deposit Unlock, a reinsurance-backed mortgage indemnity scheme.
After joining this scheme, Accord Mortgages can now lend up to 95% loan-to-value (LTV) for new build houses as the government’s Help to Buy and mortgage guarantee schemes prepare to close in less than three months.
Gallagher Re applauded Accord Mortgages for taking steps to extend its support of borrowers with smaller deposits.
Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, said: “We are absolutely delighted to welcome Accord Mortgages to the Deposit Unlock scheme, bringing more choice in quality, competitive, high LTV mortgages for new build properties at a time when they are needed most.
“With the imminent closure of government assistance schemes, the cost of living crisis impacting so many families’ finances and the ability to save a sizeable deposit being such a big barrier to realising the dream of home ownership, it is great to have another major lender taking steps now to ensure the continued support of those with smaller deposits.”
Deposit Unlock was developed for the house building industry to fill a growing gap in low-deposit lending for the new build market, according to Gallagher Re.
The broker, who manages the scheme, developed Deposit Unlock in partnership with the Home Builders Federation (HBF) and Homes for Scotland.
Rance added: “The successful expansion of this private sector initiative is enabling more people to get on the property ladder every day by providing access to low-deposit lending at affordable rates – and so solving a real socio-economic problem.
“The scheme also strives to make sure that well-insulated, energy-efficient homes are within reach of first-time buyers and second-steppers.
“Deposit Unlock is a fantastic example of cross-industry collaboration, with house builders, lenders and the insurance industry coming together to create a long-term sustainable solution that unlocks the availability of mortgages for new build homes at zero cost to the taxpayer.
“Accord’s product range launch also comes at an important time for the scheme as it expands outside of the original house builders to the entire market.”
The Deposit Unlock scheme soft launched in partnership with Newcastle Building Society last summer and 17 founding members of the Home Builders Federation, before welcoming Nationwide in October 2021 and now YBS’s Accord Mortgages.
Since launch, Deposit Unlock has also steadily increased the number of participating house builders with 24 firms representing more than 60% of new build construction now signed up and more in the process of joining, according to the broker.