Barratt & Persimmon team up with Barclays and TSB on new 5% deposit homeownership scheme

In a new initiative to make homeownership more accessible and affordable, leading housebuilders Barratt Redrow and Persimmon, alongside real estate asset manager QSix and Ahauz, an FCA regulated mortgage lender, have created the Rezide Equity Loan. This innovative, second charge loan product 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.

This groundbreaking product enables prospective buyers to buy a new build home with a significantly reduced upfront investment. Under the Rezide scheme, homebuyers will need to provide just 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.

This initiative represents a major step forward in addressing affordability challenges and helping more people achieve the goal of homeownership. 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. Launched in the wake of the withdrawal of government support schemes like Help-to-Buy, this initiative highlights a collaborative and innovative approach within the new build housing sector.

Lee Chiswell, Head of Mortgages at Barclays UK, said: “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.”

Craig Calder, Secured Lending Director at TSB, commented: “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.”

Adrian MacDiarmid, Head of Mortgages at Barratt Redrow commented: “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.”

Edward McCoy Group Sales Director at Persimmon commented: “Persimmon is always looking for new ways to improve customers’ opportunities to buy a home. We therefore welcome the launch of the new Rezide Equity Loan scheme, as it will add another useful product that enhances affordability. We look forward to welcoming many new homeowners through this innovative new product.”

Matthew Northover, QSix Chief Investment Officer commented: “The Rezide Equity Loan has been designed to replace the previous Help to Buy scheme and widen access to homeownership. By helping to lower affordability constraints for homebuyers, the new scheme will enable housebuilders to accelerate new developments and meet the new Government’s objectives for new homes.”