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Barratt Redrow and Persimmon annouce Help to Buy style scheme with 5% desposit

ended 13. October 2025

According to Bloomberg, Barratt Redrow and Persimmon have launched a scheme which requires a 5% deposit with a further 15% equity loan up to £100,000. Barclays and TSB will offer products to finance the remaining 80%. A second charge will secure the 15% equity loan.

Will this help to reignite the market?

Are the private sector taking matters into their own hands, tired of waiting for the government?

What are the potential advantages and disadvantages of such a scheme?

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4 responses from the Newspage community

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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
While the property market sleepwalks its way to the budget, the housebuilders take it upon themselves to get things moving. However, this equity-type loan is not backed by the government itself, so it is essential to carefully read the terms and conditions to fully understand the agreement you are entering into and to do your own due diligence.
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Justin MoyVerified
Managing Director at EHF Mortgages
This kind of scheme could be a small catalyst for the new build market, which has struggled in the financial headwind created by this government. Similar to the original Help to Buy scheme, this could be an ideal solution for those with smaller deposits, although there are other, more traditional mortgage schemes for those with 5% deposits buying a new build property, so potential borrowers need to consider more than just this particular solution.
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Mike StatonVerified
Director at Staton Mortgages
Whilst this will be a welcome break to many first time buyers, many independant will be crying out for this to be regulated borrowing. Miss-selling and conditional selling has been rife in the industry for years, recently being hilighted on national tv. Unregulated and unqualified sales people have the opportunity to use this to corner would be buyers into using additional extras such as conveyancing and Mortgage advisors that they wouldn't normally choose. The FCA need to step in here to make sure every customer is being treated fairly and an industry that has a history of complaints of conditional selling needs to be watched very closely. Under no circumstance would I be using associated parties when taking out this loan. Impartiallity needs to be pushed on these loans. On paper it sounds like a great scheme much needed for the industry, in reality, it could be a consumer nightmare
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Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
The fundamental absurdity of the current mortgage lending system allows banks to refuse loans to buyers who could easily afford monthly mortgage payments but lack hoarded deposit. Smart private sector developers now understand that helping customers buy homes generates more sustainable profits than building unsold inventory while waiting for Westminster to discover basic economics. However, the second charge complexity will invariably create future remortgaging headaches that lawyers will celebrate more than homeowners. The saving grace here lies in the fact that we are transferring risk from taxpayers to developers' balance sheets, which will hopefully create genuine accountability where builders must deliver quality rather than rely on state guarantees.