Bluestone Mortgages has launched a deposit scheme to empower first-time buyers who cannot secure finance through mainstream lenders to get onto the property ladder.

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

First-time buyers can apply for a 95% loan to value (LTV) new build mortgage with a deposit of only 5%, up to a maximum loan of £600,000 over a 35-year term with rates starting at 7.94%.

The scheme applies specifically to new build houses and flats available through a wide range of participating scheme developers.

The new Deposit Unlock product range will not involve credit scoring and includes both standard and fee-free options.

This range will provide brokers with solutions that support customers with adverse credit, or those who are self-employed or contractors.

Bluestone Mortgages, part of the Shawbrook Group, specialises in residential mortgage origination, portfolio servicing and cloud-based technology development in the financial services sector.

Bluestone Mortgages sales & marketing director Reece Beddall said: “As the first and only specialist lender in the market to offer Deposit Unlock to first time buyers, we are empowering our customers to find new solutions to unlock their homeownership dreams. This partnership scheme reinforces our commitment to supporting disenfranchised customers with small deposits to make their first step on the property ladder, as well as helping housebuilders find customers for their property.”