A new industry-backed equity loan scheme supported by some of Britain’s biggest housebuilders and high street lenders has been launched to help first-time buyers and movers step onto the property ladder amid continued pressure on affordability and rising mortgage costs.
The Rezide Equity Loan, created jointly by Barratt Redrow, Persimmon, real estate asset manager QSix and Ahauz – an FCA-regulated mortgage lender – aims to fill the gap left by the government’s Help to Buy programme, which ended in 2022.
The initiative will be backed by Barclays and TSB, who will offer accompanying first-charge mortgages.
Under the new model, homebuyers will contribute a 5% deposit, while a 15% equity loan – capped at £100,000 – will be provided by Rezide.
MAKING NEW-BUILD VIABLE
The remaining 80& of the purchase price will be financed through a mortgage from Barclays or TSB. The loan carries a fixed 4% interest rate, is non-amortising and has no early repayment penalties. The value of the loan will fluctuate with the market value of the home.
Initially available for homes built by Barratt Redrow and Persimmon, the scheme will be rolled out across England through regulated mortgage intermediaries.
The partners behind it say the goal is to make new-build ownership viable again for households who might otherwise be priced out.
AFFORDABILITY BARRIERS
The launch comes amid renewed political focus on housing policy. Chancellor Rachel Reeves is under pressure to revive homeownership rates, which have fallen to a 40-year low among under-35s, while meeting Labour’s target of building 1.5 million homes over the next parliament.
With mortgage rates still hovering around 5% affordability remains one of the greatest barriers to market entry.
Adrian MacDiarmid, Head of Mortgages at Barratt Redrow, says affordability challenges are not limited to first-time buyers.
He adds: “Many people – from growing families looking to trade up, to those coming out of a relationship – feel homeownership is beyond them.
“Since Help to Buy ended, that gap has widened. This is why we have worked across the industry to design a mortgage that enables people to buy a new build property with just a 5% deposit.”
INNOVATIVE PRODUCT
Edward McCoy, Group Sales Director at Persimmon, described the new loan as “a useful product that enhances affordability”, adding that the builder was “looking forward to welcoming many new homeowners through this innovative product”.
Barclays and TSB are expected to begin accepting applications immediately.
Lee Chiswell, Head of Mortgages at Barclays UK, says the bank is “focused on making home ownership more affordable for first-time buyers and movers” while Craig Calder, Secured Lending Director at TSB, called it “a great new way to help open the door to property ownership”.
PRIVATE SECTOR SOLUTIONS
The introduction of Rezide follows the withdrawal of successive government-backed initiatives, from shared equity schemes to mortgage guarantees.
The private sector has since faced growing calls to develop its own affordability solutions as high interest rates, tougher stress testing, and stagnant wage growth have combined to erode purchasing power.
Analysts say the new scheme could play a role in supporting housing demand and supply.
Matthew Northover, Chief Investment Officer at QSix, says: “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, the new scheme will enable housebuilders to accelerate new developments and meet the government’s objectives for new homes.”
The minimum income required to qualify for a home through the scheme will be lower than that for a traditional 95% loan-to-value mortgage, broadening access to mortgage credit.
Repayment of the equity loan becomes due upon the sale of the property or the maturity of the main mortgage, though borrowers can repay the loan at any point without incurring charges.
Economists say the move highloights how the property industry is stepping in where the state has stepped back.
If widely adopted, Rezide could help stabilise sales volumes in the new-build sector, which have been hit by higher borrowing costs and slowing buyer demand.
With Labour expected to use next month’s Budget to outline new incentives for first-time buyers, Rezide could prove to be an early sign of a more mixed public–private model of homeownership support – one that seeks to balance government ambition with market innovation.
AFFORDABLE HOME OWNERSHIP
Lee Chiswell, Head of Mortgages at Barclays UK, says: “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.”
MORTGAGE SOLUTIONS
And Craig Calder, Secured Lending Director at TSB, adds: “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.”
