If you’re thinking about buying a new-build home but the deposit feels out of reach, the Rezide Equity Loan might be worth a look.
It’s a private scheme (not run by the Government) that helps buyers get onto the property ladder — or move to a new home — with just a 5% deposit.
It’s often compared to Help to Buy, but it’s open to both first-time buyers and existing homeowners, and funded by private lenders instead of the Government.
How It Works
The concept is pretty straightforward.
- You put down a 5% deposit
- Rezide lends you 15% of the property value as an equity loan
- You take out a mortgage for the remaining 80%
- You pay 4% interest on the equity loan (this part is interest-only)
You pay back the equity loan when you sell the property or remortgage — and the repayment amount is based on the home’s value at the time, not the value when you first bought it.
A Simple Example
Let’s take a £300,000 new-build home:
- Your deposit (5%): £15,000
- Rezide equity loan (15%): £45,000
- Your mortgage (80%): £240,000
This means you’re borrowing less from the bank, which can make monthly payments more manageable compared to a 95% mortgage.
Key Things to Know
- Minimum 5% deposit required
- 15% equity loan on eligible new-build homes
- Fixed 4% interest on the equity loan
- Loan is repaid when you sell or remortgage
- Available across England & Wales
- Open to both first-time buyers and home movers
- Repayment is linked to the property value at the time
If house prices rise, the cost to repay the loan rises. If they fall, you repay less.
What Are the Benefits?
- Makes buying a home possible with a smaller deposit
- Keeps mortgage borrowing lower
- Fixed interest offers cost certainty
- Not limited to first-time buyers
- Early repayment is possible if you want to clear it
What To Be Aware Of
- You’ll have two loans secured against your home
- Interest is charged from day one (unlike old Help to Buy)
- You repay a percentage of your home’s future value
- Only available on selected new-build developments
As with any financial decision, it’s worth speaking to a mortgage adviser to make sure it fits your circumstances and compare it with other routes like Shared Ownership, Deposit Unlock, and standard mortgages.
Who Might This Work For?
This scheme could suit you if:
- Your deposit savings are limiting your options
- You want to buy a new-build
- Having a smaller mortgage would help affordability
- You like the idea of a fixed-rate equity loan
It might not be a fit if:
- You don’t want to share future equity
- You’re looking at older homes
- You’d rather have just one loan against the property
Final Overview
The Rezide Equity Loan is a fresh alternative for people wanting to buy a new-build home with a smaller deposit — especially now Help to Buy has ended.
It won’t be right for everyone, but it could make homeownership more achievable, particularly if your deposit is the main thing holding you back.
If you’re unsure whether it suits your situation, get advice from a mortgage professional who can talk you through your options and find the most suitable route.