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Deposit Unlock, the housebuilder funded scheme that let you buy a new build home with a 5% deposit, closed to new completions in April 2026. Mortgage offers already issued at that point are being honoured, but you cannot start a new Deposit Unlock purchase. If you found this page hoping to use it, the good news is that a 5% deposit on a new build is still possible through other routes, and this guide covers what they are and what changed.
What Deposit Unlock was
Deposit Unlock was set up by the Home Builders Federation with insurance arranged through Gallagher Re. Participating housebuilders paid into a mortgage indemnity insurance pot that protected the lender against losses on 95% loan to value new build mortgages. In return, lenders who would not normally lend 95% on a new build were willing to do so on homes from participating builders. It was open to first-time buyers and home movers, with no regional restrictions and a high maximum property value, and most of the large national builders took part. Lenders came and went over its life, and by the end only a small number were offering products, mostly through brokers. The scheme announced it would close to new completions in April 2026, and it did.
Deposit Unlock closed to new completions in April 2026; existing mortgage offers are being honoured.
The permanent government mortgage guarantee scheme launched in July 2025 supports 95% lending, but new build eligibility varies by lender.
Some lenders offer 95% on new build houses under their own criteria, and shared ownership and family help remain open.
Why it mattered for new build buyers
New build has always been harder to buy with a small deposit. Many lenders cap new build houses at 85% or 90% loan to value and flats lower still, because of the new build premium and the risk that the property is worth less on resale than on the day it is first sold. Deposit Unlock filled that gap for a few years, especially after Help to Buy closed in 2023. Its closure does not change lender caution about new build; it removes one of the tools that worked around it. So the question now is which lenders will still go to 95% on a new build, and under what conditions.
The government mortgage guarantee scheme
In July 2025 the government made its mortgage guarantee scheme permanent, having run it as a temporary measure from 2021. It supports lending at 91% to 95% loan to value for first-time buyers and home movers, with the government guaranteeing part of the lender’s loss on the portion above 80% in return for a fee. Most of the large high street lenders participate. Whether a given lender applies it to new build is the important question, because published guidance from several sources indicates new build is excluded under the scheme’s rules or by individual lender policy, and the terms have moved more than once. I check the live position lender by lender rather than relying on a guide, this one included. My guide to government schemes for first-time buyers covers the wider set.
Lenders’ own 95% new build products
Separately from any scheme, some lenders offer 95% loan to value on new build houses under their own criteria, often with restrictions on flats, on builder incentives and on the property’s size or value. This is where the market has moved since Deposit Unlock closed, and it changes month to month. The rate for a 95% new build product is higher than at 90%, so the comparison is not just whether you can borrow but what the extra 5% of borrowing costs against waiting to save it. My new build mortgages page covers the lender criteria that matter.
Shared ownership, family help and developer incentives
If 95% on the open market does not work, shared ownership lets you buy a share of a new build with a deposit based on the share rather than the full price. Family help through a guarantor or JBSP mortgage or a gifted deposit can bridge the gap to a 10% deposit, which opens far more lenders. And developers often offer deposit contributions or other incentives, which help but have to be declared to the lender and can affect the valuation; I have written separately about new build incentives and your mortgage.
Speak to an expert
Reserved a new build and found the 5% deposit route you were counting on has gone? Tell me the property, the price and your deposit and I will tell you which lenders will still look at it.
If you had a Deposit Unlock offer
If your mortgage offer was issued under Deposit Unlock before the scheme closed, the lender has committed to honour it, and your purchase can complete as planned provided it does so within the offer period. If your build is delayed past the offer date, you cannot renew under the scheme, so the replacement mortgage would need to come from one of the routes above. That is worth planning for now rather than in the week the offer expires, and my guide to what happens when a new build mortgage offer expires covers the steps.
What a 5% deposit buys in Hampshire
At Fareham’s average price of around £328,000 in June 2026, a 5% deposit is roughly £16,400 and a 10% deposit about £32,800. In Winchester, where the average was around £471,000, the same percentages are about £23,500 and £47,000. The gap between 5% and 10% is real money, but so is the difference in the rates available at each level, which is why the decision is about total cost rather than just getting in.
Where that leaves you
Deposit Unlock has gone, but a 5% deposit on a new build has not. It now depends on the lender’s own new build policy, on whether the property is a house or a flat, on any developer incentive, and on your circumstances. Which route fits you is what an advice appointment is for. Call me on 01425 203055 or book a 15 minute call and I will check the live options.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
