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According to the Federation of Home Builders, 50 builders have signed up for a 95 percent “Deposit Unlock” mortgage scheme.
The 5% deposit plan was developed by Gallagher Re, a home developer and reinsurance broker.
It includes builders such as Persimmon, Taylor Wimpey and Crest Nicholson.
The measure, introduced last August in England, aims to attract more buyers or move up the housing ladder.
It is based on the government’s “Purchase Assistance” scheme, which expires at the end of this month after ten years.
The Deposit Release Program works by offering mortgage product protection to participating mortgage lenders so they can lend to consumers at 95% LTV.
The federation says this means new buyers and existing homeowners can use the program to buy a new home worth up to £833,000 with a 5% deposit with a “competitively priced mortgage product”.
Its creditors are the National Building Society, Accord Mortgages and the Newcastle Building Society.
The 50 Builder Registration Scheme takes place in the middle of New Home Week—February 27 to March 3—during which a survey was released that found that 18% of people said the main problem preventing them from buying a home was uncertainty about whether they are to secure the mortgage.
Last month, the trade organization launched a dedicated website for the scheme.
Home Builders Federation Executive Director David O’Leary says: “The scheme started with one lender and 17 home builders. It is currently being extended to a number of mortgage lenders and HBF members nationally.
“Importantly, against a difficult financial backdrop, much-needed support is being provided to enable more families to buy homes.”
Adds Gallagher Re Mortgage Reinsurance Managing Partner Stephen Rance: “Even in today’s tight financial environment, price-competitive low deposit mortgage products for new homes with all their energy efficiency benefits are now more widely available across the UK thanks to the scheme. ”
The survey was conducted by research firm Yonder Data Solutions from 3 to 5 February among 2,088 British adults.
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