Accord Mortgages has confirmed that it has joined the Deposit Unlock scheme and can now lend up to 95% LTV for new-build houses.

From today, the intermediary-only lender will offer brokers an exclusive range of mortgages through the insurance-backed scheme.

The Deposit Unlock scheme has been developed by the Home Builders Federation (HBF), lenders and builders and is being managed by reinsurance broker, Gallagher Re.

Accord’s Deposit Unlock product offering is now available to any borrower purchasing a new-build house through the scheme, not just to first-time buyers, with a maximum borrowing limit of £600,000. The lender’s standard lending policy and affordability criteria must also be met, Accord added, while loan-to-income is capped at 4.49.

Fixed rates in the range start from 3.99% for two-years, which comes with a £495 fee. The lender is also offering a two-year discounted standard variable rate mortgage at 3.10% with the same fee.

“We’re always looking for ways we can support brokers to help more people on to and up the property ladder, and being part of the Deposit Unlock scheme only complements our offering as a new build lender,” commented senior manager for new propositions at Accord Mortgages, Nicola Alvarez.

“We’re really looking forward to helping borrowers with some of the smallest deposits purchase a new build house, who up until now we’ve only been able to support through Help to Buy. With this scheme coming to a close, and limited choice for brokers and their clients currently in this market, we’re really pleased being part of the scheme will provide more options.”

HBF executive chairman, Stewart Baseley, said: “The addition of Accord to the Deposit Unlock stable is another major step forward for the scheme that will open it up to even more potential customers. Deposit Unlock provides a real option for buyers, many of who would otherwise struggle to save the deposit required to secure a new home.

“In turn, the certainty of demand the scheme will provide allows builders to invest confidently in new sites, deliver the homes the country needs and create jobs and investment in economies across the country.

“With the Help to Buy scheme about to close, we developed Deposit Unlock to provide an alternative option for buyers. Accord’s entry will help the scheme grow and help more buyers realise their ambition of purchasing a new build home.”

Managing partner of mortgage indemnity reinsurance at Gallagher Re, Steven Rance, added: “With the imminent closure of government assistance schemes, the cost of living crisis impacting so many families’ finances and the ability to save a sizeable deposit such a big barrier to realising the dream of home ownership, it is great to have another major lender taking steps now to ensure the continued support of those with smaller deposits.”

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