Gallagher Re, the global reinsurance broker, welcomed Perenna in April 2024, to Deposit Unlock, the innovative reinsurance-backed mortgage indemnity scheme it helped design and develop for the house building industry to fill a growing gap in low-deposit lending for the new build market.
Perenna joining Deposit Unlock makes the scheme more accessible, by offering lending at up to 6 times income, improving affordability for those struggling to step onto the housing ladder. Buyers using the scheme will be able to access Perenna's flagship flexible long-term fixed rate mortgage products to purchase new build homes. Perenna's mortgage comes with short early repayment charges of no more than five years too.
As part of this scheme, Perenna will also accept up to a 5% deposit contribution from developers who offer this incentive. This means customers could buy their new build home with zero deposit where the builder is contributing the full 5%.
Colin Bell, Founder and COO of Perenna, commented: "We're thrilled to announce our collaboration with Deposit Unlock, a partnership aimed at making homeownership more accessible to everyone. Whether your customer is a first-time buyer looking to step onto the housing ladder or a second-time buyer seeking new opportunities, Perenna is here to make a difference in their outcome."
"Affordability remains a struggle for many buyers and especially first-time buyers, and through this partnership and our consumer-friendly affordability boost mortgage we will help aspiring homeowners realise their dream of homeownership and living in the home they really want."
"By enabling deposit contributions from developers, we're opening doors to the possibility of zero deposits for some customers. This partnership is a winner for aspiring homeowners of new build homes."
Deposit Unlock is already available with over 75 developers and several lenders throughout the UK, so buyers using Deposit Unlock have a broad choice of energy-efficient new build homes within their reach. The scheme has historically allowed buyers to purchase a home with just a 5% deposit at zero cost to the taxpayer with much reduced risk to lenders. Protection is offered to participating lenders, funded by the house-building community, enabling them to safely lend at 95% LTV.
Perenna joining the Deposit Unlock scheme supports first-time buyers onto the property ladder, by bringing two strong scheme USPs:
David O'Leary, executive director at the Home Builders Federation, added:
"The dream of home ownership has become an increasingly difficult one to achieve in recent years with deposit requirements beyond the reach of many. The resultant lack of demand has impacted the supply of new homes, with developers unable to invest in new sites without any certainty in the market. Deposit Unlock was developed jointly by lenders and developers to address the dearth of affordable mortgage products and so enable people to buy. Perenna's addition to the Deposit Unlock table will broaden the offering to a wider market, enabling more people to buy and so more homes to be delivered".
"Freddie Scarratt, Head of UK mortgage at Gallagher Re, commented: Given recent history, Perenna's long-term fixed rate offering is a great addition to the Deposit Unlock scheme, offering peace of mind on monthly payments to help borrowers achieve their homeownership dream".
Deposit Unlock is delighted to have Perenna on board! If you have any questions, please do not hesitate to reach out to Freddie Scarratt at Gallagher Re on +44 (0)77963 73943.
