Rezide Equity Loan Explained: A New Homebuyer Scheme from Barratt Redrow and Persimmon

What is the reside equity loan?

The loan marks a fresh opportunity for first-time buyers and movers seeking to purchase new-build homes from Barratt Redrow and Persimmon.

This initiative follows the closure of the government’s Help to Buy scheme in March 2023, which had enabled eligible buyers to secure a home with just a 5% deposit, thanks to a government-backed equity loan of up to 20% (or 40% in London).

While the scheme helped many onto the property ladder, it was not without its challenges. Its financial and administrative complexity led to difficulties for homeowners during repayment, particularly when selling or refinancing. Additionally, fluctuating interest rates raised concerns about long-term affordability.

Since its end, the market has been grappling with a gap in support for aspiring homeowners. In response, leading UK housebuilders—Barratt Redrow, and Persimmon, have launched new initiatives aimed at improving access to home ownership and bridging the gap left by Help to Buy.

“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.”

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 head of mortgages at Barratt.

How the Rezide loan works

The innovative scheme will enable homebuyers of Barratt and Persimmon homes to put down only 5% of the purchase price for the deposit with a further 15% of the homes market value (subject to a maximum of £100,000).

The following 80% of the remaining purchase price will be funded by the high street banks of Barclays and TSB.

The repayment of the Rezide Loan carries a fixed interest rate of 4%, payable over the entire term, of the loan. The repayment loan becomes due upon the sale of the property or the maturity date of their first line mortgage. However, the loan can be repaid at any time.

Example:

A home priced at £300,000 would require a £15,000 deposit (5%) from the buyer. Rezide would provide a £45,000 equity loan, 15% of the property’s value, and the buyer would then seek a £240,000 mortgage (80%) from Barclays or TSB to complete the purchase.

What this means for buyers

The process

• The sales adviser will inform customers about the full suite of products available to support their property purchase. By understanding these options, buyers can make more informed and suitable decisions about which properties to pursue.
  • This not only creates a more transparent and efficient purchasing process but also contributes to a healthier housing market.
  • With better-informed buyers, the risk of late-stage issues is reduced, which in turn enhances overall market liquidity and stability.
• If a customer is interested in the scheme, the sales adviser will refer them to a mortgage adviser for more detailed advice on the product and to help determine the product’s suitability for the customer.
• The mortgage adviser will conduct a thorough financial qualification process, with the customer providing documents for review.
• Both lenders will perform underwriting checks to ensure compliance with policy rules and affordability.
• If approved, mortgage offers are issued by both lenders, and the mortgage adviser will help the customer coordinate with solicitors for the next steps.
• The customer will then proceed to the completion stage of purchasing the selected home. The solicitor will handle all pre-completion and post-completion formalities.

Why the Rezide loan is a positive move for the housing market

The introduction of the loan represents a timely and constructive response to ongoing challenges in the UK housing sector.

1. Reviving accessibility for first-time buyers
   After the end of Help to Buy, many first-time buyers were priced out of the market. Rezide’s model fills this void, restoring affordability for households with modest deposits.
2. Strengthening the new-build market
   Help to Buy once accounted for a substantial share of new-build purchases. Its absence slowed demand, affecting construction pipelines, and regional development. Rezide reintroduces demand into this space — helping developers maintain momentum, protect jobs, and continue investing in housing.
3. Encouraging market stability and predictability
   Rezide offers a fixed-rate equity loan, reducing uncertainty for borrowers and making financial planning easier.
4. Private-sector innovation and collaboration
   The partnership between major developers and high-street lenders signals a new era of cooperation in tackling housing affordability.
5. Supporting broader economic confidence
   Housing activity has wide-reaching economic impacts — from job creation in construction to consumer spending and local infrastructure growth. By improving affordability, Rezide helps stimulate market confidence.

The Rezide equity loan is a forward-thinking initiative that balances accessibility with financial responsibility. It’s simpler than its predecessor, more predictable for borrowers, and supportive of both buyers and builders alike. In a market still recalibrating after Help to Buy, Rezide could be the innovation needed to restore momentum and unlock a new wave of sustainable homeownership.