The product enables buyers to access a loan covering 15% of the property’s market value—up to £100,000—while the remainder is financed through a mortgage from Barclays or TSB

A new second charge product, the Rezide Equity Loan, has been launched to help buyers secure new-build homes with a deposit as low as 5%.

The product enables buyers to access a loan covering 15% of the property’s market value—up to £100,000—while the remainder is financed through a mortgage from Barclays or TSB.

Developed in response to affordability challenges and the withdrawal of government support schemes such as Help to Buy, the product is intended to assist both first-time buyers and movers struggling to afford new-build properties. The initiative is initially available to those purchasing homes from Barratt Redrow and Persimmon, with a planned rollout across England.

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, said Lee Chiswell, head of mortgages at Barclays.

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, Chiswell added.

Craig Calder, secured lending director at TSB, also expressed support to the new product.

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, he said.

The Rezide Equity Loan has been designed to replace the previous Help to Buy scheme and widen access to homeownership, added Matthew Northover, chief investment officer at real estate asset manager QSix.

He added: 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.