Gen H has launched New Build Boost, the first scheme since Help to Buy that targets buyers with small deposits and no access to family help.
The structure of the boost mirrors Help to Buy but comes with a number of borrower-friendly design changes.
The scheme is made up of three parts, which include the buyer bringing a minimum of a 5% deposit, taking out an 80% loan-to-value (LTV) mortgage with Gen H and in return the lender closes the gap with a 15% interest-free boost supported by the house builder.
New Build Boost buyers will get access to the lender’s standard 80% LTV mortgage lending criteria.
The boost is interest-free for its entire term, which can run for the full duration of the mortgage.
The borrower also has the right to repay the boost in whole or in part at face value for the first five years.
At the five-year mark, the value of the boost will step up or down to reflect changes in the property value to date.
The amount to be repaid under the boost is capped at 2x the original amount to protect homeowners in the event of outsize house price growth.
New Build Boost will be available on any plot at eligible sites from exclusive launch partners Persimmon.
There are over 120 participating sites across England for launch. It will also be opened for all house builders to join, while also inviting other lenders to sign up to make their mortgage products available under the scheme.
Gen H founder and chief executive officer Will Rice says: “The housing crisis that our country faces can only be solved by building more new homes and ensuring that suitable financing solutions are available for people to buy them.”
“We have designed New Build Boost to open up homeownership to a wider audience – especially those who are not fortunate enough to have access to family support – while also giving home builders the confidence to ramp up the delivery of new homes to market.”
“We applaud the ambition and urgency shown by the government to tackle the housing market’s structural problems. New Build Boost is our rallying cry to the private sector to raise its game and show that it too can be a part of the solution.”
