It aims to become the sole complex credit lender to offer the high LTV product through the scheme
Specialist lender Bluestone Mortgages has announced plans to extend its lending to more first-time buyers through the Deposit Unlock scheme.
In collaboration with global reinsurance broker Gallagher Re and the Home Builders Federation, Bluestone aims to become the sole complex credit lender offering a 95% loan-to-value (LTV) mortgage for new builds through the scheme.
Anticipated to roll out a new product in early 2024, the lender said it wanted to support disenfranchised first-time buyers, particularly those grappling with limited options since the end of the Help to Buy scheme.
Deposit Unlock is a mortgage guarantee scheme designed to support borrowers by enabling them to secure a new-build home with a minimal 5% deposit. Bluestone said it would use its expertise in specialist lending to open up the scheme to first-time buyers who are unable to secure finance through mainstream lenders.
“Following the end of the Help to Buy scheme, those with smaller deposits are finding it increasingly challenging to get onto the property ladder as the increased cost-of-living limits their power to save or a deposit,” commented Reece Beddall (pictured), sales and marketing director at Bluestone Mortgages. “With this in mind, we’re focused on innovating to find new solutions to help would-be borrowers with lower deposits achieve their homeownership goals.
“This partnership demonstrates our commitment to supporting disenfranchised first-time buyers with complex credit, as well as helping housebuilders find customers for their properties.”
Freddie Scarratt, head of UK mortgage at Gallagher Re, said: “Bluestone Mortgages is a fantastic new addition to the Deposit Unlock scheme, as they broaden the potential customer base for the scheme’s house builders. Heading into 2024, consumers need more choice, and Deposit Unlock is delivering that with a new lender and a unique product.
“With over 75 developers now signed up, and with an increasing choice of lenders on board, Deposit Unlock is going from strength to strength, providing a positive impact for all stakeholders. We look forward to welcoming Bluestone Mortgages onboard in the new year.”