Gen H has reduced its New Build Boost rate from 6.29% to 5.95%.
New Build Boost launched in March as a private sector take on Help to Buy. Buyers bring a 5% deposit, take an 80% mortgage with Gen H, and receive an interest-free 15% boost – an equity loan which is frozen for five years – to close the gap. So far, 94% of New Build Boost applicants have been first-time buyers, ranging in age from 19 to 52.
For someone with a 5% deposit, a £300,000 home mortgaged over 30 years would cost £1,431 per month with New Build Boost. On the current best buy 95% LTV rate of 4.78%, the monthly payment would be £1,492 per month.
On the current best buy 90% LTV rate of 4.40%, assuming 5% gifted deposit from the builder, the monthly payment would be £1,352 per month. But compared with a 90% LTV, with New Build Boost, purchase power is boosted by over 12%.
Pete Dockar, chief commercial officer at Gen H, said: “The feedback we’ve been getting from New Build Boost brokers was overwhelmingly positive, but it came with an ask: make the New Build Boost rate begin with a “5”! I’m delighted that we’ve found a way to make it work, and am excited to see more New Build Boost homeowners join our books. The scheme supports people with no other path onto the property ladder, so every single completion is a huge win for our mission-driven team.”
