Should I use the Deposit Unlock Scheme?
When deciding what scheme to use, you’ll need to weigh up both the pros and cons to ensure you’re making the right decision. Like with any housing deposit scheme, the Deposit Unlock Scheme has its own benefits and drawbacks.
One of the main drawbacks is the limited options of lenders and properties. As 3 lenders offer this scheme you may end up paying more in comparison to a standard mortgage. Furthermore, only certain new build house builders can be used, again reducing you choices which could cost you more. However, as you can get a mortgage with a 5% deposit this could cancel out the more expensive property or mortgage rate.
One final factor to consider is that as soon as you move into your new build home, it’s no longer considered a ‘new build.’ This means the property’s value could potentially drop instantly depending on the market. Although, if you plan to live in the property for many years this may not affect you at all.
If you’re uncertain about which path to take, our team of specialists is ready to assist you. They have decades of experience in interest-only mortgages and an in-depth understanding of the UK mortgage market.
We have close working relationships with a wide range of lenders, including those on the high street and niche-market specialists. It also means that we can access better rates for interest-only mortgages than if you had approached them directly yourself.