Newcastle BS launches 5% deposit mortgages for new build

Newcastle Building Society has today (June 23) launched a range of 5% deposit mortgages for buyers of new-build properties under an innovative mortgage scheme developed with the Home Builders Federation and its members.

Deposit Unlock aims to give small-deposit buyers more borrowing options, by allowing them to secure a new-build home up to a value of £330,000 with a deposit of 5%.

The scheme will initially be available as a pilot on selected plots in the north east of England through four participating housebuilders; Barratt Homes, Bellway, Keepmoat and Vistry. As the first lender in the scheme, Newcastle Building Society has announced a range of mortgage rates under Deposit Unlock, starting at 3.50% for a two-year fixed rate mortgage. The scheme will roll out to the rest of the UK in the coming months.

Andrew Haigh, chief executive at Newcastle Building Society, said: “For many people home ownership can feel out of reach when a large deposit is required, so we need to do more to increase access to low-deposit mortgage products.

“In particular, people looking to buy new-build homes need new options and we recognise there is an urgent need for more homes to be built, so we’re pleased to be working …