Published 2026-07-20 · New Build Mortgage Guide · Written and reviewed by Phillip Wakeling-Smith (CeMAP)

Low-deposit new-build mortgages: every 5%-and-under route in 2026

Quick answer: You can still buy a new build with a 5% deposit — and in a couple of cases with less. Mainstream 95% ranges now cover new-build houses at several major lenders, 100% products exist for the right applicant, and builder money can be turned into either a deposit or a cheaper rate. The scheme most people have heard of, Deposit Unlock, closed to new buyers in April 2026 — so here's what actually works now.

What happened to Deposit Unlock

The scheme worked by having builders pay into an insurance policy that protected lenders lending 95% on brand-new homes. It launched in 2021 with big names attached, but lenders drifted away — by its final year only a couple of smaller participants remained, and the Home Builders Federation confirmed closure to new completions in April 2026. No successor scheme has been announced. (If you already hold a mortgage offer made under the scheme, it remains valid — speak to your lender or broker about your completion timeline.)

Beware: plenty of sites — including, at the time of writing, parts of the scheme's own — still describe Deposit Unlock as open. It isn't.

What replaces it: the 2026 low-deposit routes

1. Ordinary 95% new-build ranges (the quiet revolution). The real story of the last year is that mainstream lenders now lend 95% on new-build houses without any scheme: Barclays and NatWest both raised new-build caps in late 2025, joining the likes of Nationwide, Santander, Accord and Skipton. Flats remain more restricted at most lenders — see our house vs flat LTV guide and the lender criteria tables for the current caps, verified and dated.

2. 98% with a 2% deposit — Cambridge First Step. Launched to the whole market on 8 July 2026: a first-time-buyer-only 2-year fix at 98% LTV (launched at 5.89% with a £499 fee), maximum loan £500,000, lending up to 5.5× household income where affordable — and, unusually for this end of the market, new-build houses and gifted deposits are both accepted. One to shortlist before assuming 5% is the floor — full product detail in our First Step deep-dive. (Don't confuse it with Accord's £5k Deposit Mortgage, which reaches up to 99% LTV but excludes new builds entirely.)

3. 100% mortgages that include new builds. Skipton's Track Record lends up to 100% to established renters, and new-build houses qualify (new-build flats were added to the scheme in March 2025). Newer specialist Gable Mortgages offers 100% loans with new build explicitly included — notably priced cheaper than its second-hand equivalent. These are niche products with strict eligibility, but they exist, which post-Deposit-Unlock is the point.

4. Rate reducers — the builder's incentive as a cheaper rate. Under Own New Rate Reducer, the builder's incentive buys your mortgage rate down for the initial period instead of topping up your deposit. Halifax, Virgin Money and Perenna are among the participating lenders. Same builder money, different lever — worth modelling both ways.

5. The builder's 5% as your deposit. Perenna's criteria allow a builder's deposit contribution to form your entire deposit on a new-build house at 95% LTV — effectively the zero-deposit route Deposit Unlock never quite was. The full mechanics, caveats and eligibility are in our builder deposit contributions guide.

6. Builder-funded equity loans. Some large developers now run private Help-to-Buy-style products (a 5% buyer deposit plus a builder-funded equity loan on top). Terms vary by developer and plot — treat the equity loan's interest terms with the same scrutiny you'd give the mortgage.

How to choose between them

The routes differ on three axes: whose money bridges the deposit gap (an insurer's — gone; the lender's appetite; the builder's incentive; a family member's), what it costs (95%+ rates carry a premium; equity loans carry their own interest), and what happens at remortgage time. A 5%-deposit buyer in 2026 has more options than a year ago, not fewer — but the right one depends on income, property type (house vs flat changes everything) and how long you'll hold the mortgage. Run your numbers with the free affordability check, and check the lender tables before you reserve a plot.

Positions verified July 2026. Products and criteria in this corner of the market change monthly — always confirm the current position with the lender or a whole-of-market broker. This article is information, not financial advice.