According to the building society, it will be the first lender to offer 95% LTV mortgages to buyers of new-build homes under the new mortgage indemnity scheme, developed with the Home Builders Federation (HBF) and its members.

Initially available in the North East of England, the Deposit Unlock scheme is designed to help more low-deposit borrowers secure a new-build home up to a value of £330,000, with a deposit of 5%.

The Deposit Unlock product rates will be announced when the scheme launches in the coming weeks.

The scheme will provide low-deposit buyers with an alternative to both the recently launched government Mortgage Guarantee Scheme and the Help to Buy scheme, which will end in 2023.

The HBF and its members worked with Newcastle Building Society and insurance broker Gallagher Re, to create the Deposit Unlock mortgage indemnity scheme.

Stuart Miller, customer director at Newcastle Building Society, said: “Key to our purpose as a regional building society is to help more people get on and up the property ladder – especially those without access to the bank of mum and dad.

“Being the first lender to adopt the scheme means we’ll be providing new-build buyers with more options to access low-deposit mortgage products, and helping to address the pressing need for more homes to be built.”