Mortgage lender Perenna has recently announced it will become part of the Deposit Unlock programme, which supports first-time buyers on the property ladder.
It will join Nationwide, Yorkshire Building Society’s Accord Mortgages, Bluestone Mortgage and Newcastle Building Society in offering buyers 5% down payment competitive interest rates on mortgages for new build homes.
The scheme was launched in 2021 as a way to offer both starters and existing homeowners with a small deposit the opportunity to purchase a home.
It was developed by reinsurance broker Gallagher Re, in partnership with the Home Builders Federation (HBF). As well as lenders coming on board to provide the mortgages, the scheme is also dependent on the cooperation of housebuilders offering homes on new build plots across the UK.
Perenna, which will launch its mortgage on the scheme in mid-April, is making an offer flexible mortgages with a fixed long-term interest rate.
It says it can lend up to six times an individual’s income, improving affordability for those struggling to get on the housing ladder. Perenna’s mortgage has short-term repayment charges of up to five years.
below Unlock depositPerenna accepts a deposit contribution of up to 5% from developers offering this incentive. This means that customers can purchase their new-build home without a down payment, with the builder contributing the full 5%.
Perenna’s Deposit Unlock 90.01-95% LTV mortgages have rates from 5.92%.
Colin Bell, Founder and COO of Perenna, said: “Affordability continues to be a struggle for many buyers and especially first-time buyers, and through this partnership and our consumer-friendly affordability we are increasing the mortgage, we will help aspiring homeowners realize their dream of homeownership and living. accomplish. in the house they really want.
“By enabling deposit contributions from developers, we open doors to the possibility of zero deposits for some customers. This partnership is a winner for aspiring homeowners new-build homes.”