Bluestone Mortgages is to expand lending to more first–time buyers through the Deposit Unlock scheme.

In partnership with Gallagher Re, global reinsurance broker, and the Home Builders Federation (HBF), Bluestone Mortgages will offer a 95% LTV new build mortgage through the scheme.

The lender will launch a new product in early 2024, to support the growing number of disenfranchised first-time buyers currently unable to get onto the property ladder following the withdrawal of Help-to-Buy.

Deposit Unlock is a mortgage guarantee scheme created to help borrowers secure a new-build home with a deposit of only 5%.

Bluestone Mortgages will open up the scheme to first-time buyers who cannot secure finance through mainstream lenders.

Bluestone Mortgages sales and marketing director Reece Beddall comments: “Following the end of the Help to Buy scheme, those with smaller deposits are finding it increasingly challenging to get onto the property ladder as the increased cost of living limits their power to save or a deposit.

“With this in mind, we’re focused on innovating to find new solutions to help would-be borrowers with lower deposits achieve their homeownership goals. This partnership demonstrates our commitment to supporting disenfranchised first-time buyers with complex credit, as well as helping housebuilders find customers for their properties.”