Barratt Redrow and Persimmon launch 5% deposit home ownership initiative

Barratt Redrow and Persimmon have joined forces with Barclays and TSB to launch a 5% deposit home ownership scheme.

Offering a private sector replacement to the government funded Help to Buy initiative, which ended in 2023, the new Rezide Equity Loan, also involving real estate asset manager QSix and Ahauz, an FCA regulated mortgage lender, will allow buyers to purchase a new build home with only a 5% equity deposit.

The Rezide product, designed for first time buyers and those wishing to move into new build homes who might otherwise struggle to afford a property, will cover 15% of the property’s market value (up to a maximum loan amount of £100,000), with Barclays or TSB financing the remaining 80% of the purchase price through a mortgage.

The loan product is non-amortising with a fixed interest rate of 4%, payable over the loan’s entire term. Repayment of the loan is due if the property is sold or upon the maturity date of the borrower’s first lien mortgage. The loan can be repaid at any time, without the borrower incurring any early repayment charges.

The repayment value of the Rezide Equity Loan will adjust up or down, in the …