Barratt Redrow and Persimmon, alongside real estate asset manager QSix and Ahauz, have launched a new initiative to make homeownership more accessible and affordable.
The Rezide Equity Loan is a second charge loan product that will be supported by high street banks Barclays and TSB.
The new initiative aims to support individuals and families who have struggled to step onto the new-build property ladder due to deposit constraints and enables prospective buyers to buy a new build home with a significantly reduced upfront investment.
Under the Rezide scheme, homebuyers will need to provide a 5% equity deposit, while a Rezide Equity Loan will cover 15% of the property’s market value (up to a maximum loan amount of £100,000).
The remaining 80% of the purchase price will be financed through a mortgage from Barclays or TSB.
The new equity product will initially be exclusively available to buyers of Barratt Redrow and Persimmon homes, with the scheme being rolled out across England.
The scheme has been designed to support both first-time buyers entering the property market, as well as those seeking to move into new build homes who might otherwise struggle to afford a property.
Barclays UK head of mortgages Lee Chiswell says: “Barclays has been focused on making home ownership 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.”
TSB secured lending director Craig Calder adds: “At TSB, we’re pleased to support this innovative new mortgage solution so we can help more customers make their money go further.”
“Whether you’re buying your first home or making a fresh start, this is a great new way to help open the door to property ownership and our specialist New Build team at TSB are on hand to support you.”
The products comes to market following the withdrawal of government support schemes like Help-to-Buy.
Also commenting, Barratt Redrow head of mortgages Adrian MacDiarmid states: “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.”
