Nationwide has become the first major lender to join the 95% LTV newbuild lending via the Deposit Unlock scheme. The scheme involves both first-time buyers and second steppers to utilise the 95% LTV lending on newbuild properties up to the value of £750,000.
As Nationwide sign up for the Deposit Unlock scheme, borrowers who choose to lend from the company can now choose to take advantage of a range of 95% LTV mortgages to use when buying their first or second home (or flat).
The Deposit Unlock Scheme will be initially available to more than 1,000 newbuild sites across England, Scotland and Wales, with that figure likely to soar as the builders signed up to the scheme are responsible for roughly 100,000 completions each year.
As long as the home has a Standard Assessment Procedure (SAP) rating of 86 or above, borrowers using the scheme can also take advantage of Nationwide Building Society’s Green Reward. This reward scheme is designed to encourage people to buy greener homes and offers a greater level of cashback to those purchasing greener, more energy efficient properties.
Director of Mortgages at Nationwide Building Society released the following statement: “The need for more new homes has never been more apparent and we are keen to support the Deposit Unlock scheme – giving those with smaller deposits further hope that they can get a home of their own. The scheme will be a long-term alternative to the Help to Buy Equity Loan scheme, which is due to end in around 18 months’ time.
“During the pandemic we spent much more time in our homes and for many of us it highlighted the need for a more suitable property. Many people are looking for a home that is energy efficient as climate change becomes a priority and energy bills continue to rise”.
The Home Builders Federation’s managing director – Neil Jefferson – added: “We’re delighted to be working with Nationwide to make Deposit Unlock available to homebuyers all over the country. “With the new Help to Buy scheme reducing access to high Loan-to-Value mortgages in some regions and with the scheme winding down from the middle of next year, Deposit Unlock will help households onto the housing ladder and give developers confidence to invest in new land and labour to build on the massive housing supply increases of recent years.”
Nationwide joining the scheme displays intent from some of the market’s leaders to not just help ‘generation rent’ become ‘generation buy’ by offering more affordable newbuild properties – but that there is also significant focus on encouraging greener, more environmentally conscious living.
