Deposit Unlock: what happened and what to use instead
By Sam Kane · Last checked 8 October 2026
Deposit Unlock has closed. The Home Builders Federation, which ran it with lenders and builders, says it closed to new completions in April 2026, which means sales that had not completed by then. If you are planning to buy a new-build home now, you cannot use it. You can still look for a 95% mortgage, which the government’s permanent Mortgage Guarantee Scheme supports on homes across the UK.
The short version
- Deposit Unlock closed to new completions in April 2026. A completion is the day the sale finishes and you get the keys.
- It let buyers get a new-build home with a 5% deposit, through a participating builder and lender.
- If you already had a mortgage offer when it closed, lenders said they would honour mortgage offers already made.
- If you already have a Deposit Unlock mortgage, nothing changes. Your mortgage carries on as normal.
- The main way to buy with 5% now is a 95% mortgage. The government supports these through the Mortgage Guarantee Scheme.
- Every route still needs a mortgage, so lenders still read your credit file.
What was Deposit Unlock?
Deposit Unlock was a scheme for new-build homes. It started in 2021 and was set up by the home building industry with mortgage lenders. It was not a government scheme.
Many lenders were wary of lending 95% of the price on a new-build home, and some lent far less than that on new builds. Deposit Unlock tackled that with insurance. The builder paid for a policy that covered part of the lender’s loss if a buyer could not pay and the home was sold for less than the loan. With that cover, lenders were more willing to offer 95% mortgages on new builds.
The main points were:
- It was only for new-build homes from builders who had signed up.
- It was open to first-time buyers and people moving home.
- You needed a deposit of at least 5%.
- You applied through a participating lender, usually with a mortgage broker.
Builders took part through the Home Builders Federation in England and Wales, Homes for Scotland, and the Construction Employers Federation in Northern Ireland. Big names such as Barratt, Bellway, Persimmon and Taylor Wimpey were on the list.
When did Deposit Unlock close, and why?
The Home Builders Federation’s page says Deposit Unlock closed to new completions in April 2026. It does not give an exact day, and it does not say why. The insurer behind the scheme, Gallagher Re, also lists it as closed to new completions.
What if you already have a Deposit Unlock mortgage?
| Your situation | What happens |
|---|---|
| You already have a Deposit Unlock mortgage | Nothing changes. Your mortgage carries on with the same terms. |
| You had a mortgage offer before it closed | The Home Builders Federation says lenders will honour offers already made. Check with your lender or broker that your offer is still valid on your completion date. |
| You had reserved a new build but had no offer | You need a different mortgage. Talk to your broker and builder as soon as you can. |
| Your fixed rate is ending | You remortgage like anyone else. With a small amount of equity, your choice may be limited, so ask a broker. |
What can you use instead of Deposit Unlock?
You can still buy a new-build home with a small deposit. These are the main routes.
| Route | Deposit | Good to know |
|---|---|---|
| A 95% mortgage | 5% | The government’s Mortgage Guarantee Scheme supports these. Some lenders have stricter rules for new builds and flats. |
| First Homes (England only) | Based on a price 30% to 50% below market value | For first-time buyers. Very few are now being built. |
| Shared ownership | 5% to 10% of the share you buy | You pay rent on the part you do not own. |
| A 100% mortgage | None | Only a few lenders offer one, and they have strict rules. |
Builders sometimes run their own offers, such as paying part of your deposit or your costs. Read the terms carefully, and tell your lender about any offer, because it can change how much the lender will lend.
If you want to know how much to save, our guide to how much deposit you need for a house has worked examples. For shared ownership and the Lifetime ISA, read our renter to first-time buyer guide.
How to get ready for a 95% mortgage on a new build
- Save at least 5% of the price, plus money for the solicitor, survey and moving.
- Check your credit file with Experian, Equifax and TransUnion, and fix mistakes such as an old address. If your rent is missing from it, Report My Rent can add your rent payments each month.
- Get a mortgage in principle before you reserve a home. This is a lender’s first view of what it could lend.
- Ask a broker which lenders lend 95% on new builds. Not every lender does, and the rules for flats are often stricter. Our guide to the credit score you need for a mortgage shows what lenders look at.
- Check how long your mortgage offer lasts. New builds can take months to finish, and an offer can run out before the home is ready.
Common questions
Can I still apply for Deposit Unlock?
No. It closed to new buyers in April 2026. The main way to buy a new build with a 5% deposit now is a 95% mortgage, which the government’s Mortgage Guarantee Scheme supports.
Is Deposit Unlock the same as the Mortgage Guarantee Scheme?
No. Deposit Unlock was run by the home building industry and only covered new builds. The Mortgage Guarantee Scheme is run by the government and covers new and older homes across the UK.
Was Deposit Unlock a government scheme?
No. It was set up by the Home Builders Federation with lenders and an insurer. The builder paid for the insurance.
Did Deposit Unlock replace Help to Buy?
It started in 2021, as the Help to Buy equity loan was coming to an end, and lenders such as Nationwide presented it as another way to buy a new build with a small deposit. It worked differently: Deposit Unlock did not lend you any money.
Does closing the scheme affect my credit file?
No. If you have a Deposit Unlock mortgage, it shows on your credit file like any other mortgage, and that does not change.
Sources
- Home Builders Federation, Deposit Unlock, updated 16 March 2026, read 8 October 2026
- Housing Today, Nationwide signs up to mortgage indemnity guarantee scheme for new build, 2021
- Gallagher Re, Deposit Unlock, read 8 October 2026
- HM Treasury, 2025 Mortgage Guarantee Scheme, read 8 October 2026
- GOV.UK, First Homes scheme, read 8 October 2026
This guide is general information, not financial advice. A mortgage is a loan secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.