"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"
- Adrian MacDiarmid - Barratt Redrow
Barratt Redrow and Persimmon have partnered with Barclays and TSB to introduce a new 5% deposit home ownership initiative, offering a private sector alternative to the government-funded Help to Buy scheme, which ended in 2023.
The Rezide Equity Loan, also involving real estate asset manager QSix and FCA-regulated mortgage lender Ahauz, enables buyers to purchase a new build home with only a 5% equity deposit. It is aimed at first-time buyers and those moving into new build homes who may otherwise struggle to afford a property.
Under the scheme, the loan covers 15% of the property’s market value (up to £100,000), while Barclays or TSB finance the remaining 80% through a mortgage. The loan is non-amortising, with a fixed interest rate of 4% applied over the term. Repayment is required if the property is sold or upon the maturity of the borrower’s first lien mortgage, and can be made at any time without early repayment penalties.
The repayment value of the Rezide Equity Loan adjusts in proportion to any changes in the property’s market value. The scheme typically requires a lower minimum income than a 95% LTV mortgage equivalent, potentially increasing accessibility to home ownership.
Availability and process
Initially, the Rezide Equity Loan will be available exclusively for buyers of Barratt Redrow or Persimmon homes, with plans to roll out across England.
The scheme is designed as part of a collaborative approach within the new build sector, with sales advisers at Barratt Redrow and Persimmon offering the product alongside other purchasing options. If a buyer selects Rezide, they are referred to a mortgage adviser to confirm suitability and provide detailed advice.
Ahauz will originate the loan, while Barclays and TSB perform underwriting checks to ensure compliance with policy rules and affordability. The purchase is subject to the successful completion of these checks.
“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,” said Adrian MacDiarmid, head of mortgages at Barratt Redrow.
“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, added: “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.”
