Barclays and TSB have announced they are supporting the Rezide Equity Loan, a new second charge product that has been created by housebuilders, Barratt Redrow and Persimmon.

The product, which has also been developed by real estate asset manager QSix and Ahauz, is part of a new initiative to make homeownership more accessible and affordable. It aims to support individuals and families who have struggled to step onto the new build property ladder due to deposit constraints.

The Rezide Equity Loan aims to enable prospective buyers to buy a new build home with a reduced upfront investment of 5%. The loan will cover 15% of the property’s market value, up to a maximum loan amount of £100,000, and the remaining 80% of the purchase price will be finance through a mortgage from Barclays or TSB.

The new equity product, which is regulated by the FCA, will initially be exclusively available to buyers of Barratt Redrow and Persimmon homes across England. It is designed to support both first-time buyers entering the property market, and those seeking to move into new build homes who might otherwise struggle to afford a property.

Head of mortgages at Barclays UK, Lee Chiswell, said: "Barclays has been focused on making homeownership more affordable for first-time buyers and movers, introducing various enhancements to our new build proposition in the last year, and we’re delighted to join this initiative and help yet more people get on the property ladder.

"We’ll be accepting applications for this unique proposition from day one and hope it helps make that dream home a reality for many."

Head of mortgages at Barratt Redrow, Adrian MacDiarmid, added: "Affordability remains a big challenge for many people – not just first-time buyers but also growing families looking to trade up or people wanting a smaller home coming out of a relationship.

"Since Help to Buy ended many people have felt home ownership is beyond them. This is why we have worked across the industry to design a mortgage for people to buy a new build property with just a 5% deposit – helping make the home ownership dream a reality for them."

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