To mark six months since its launch, Gen H has released lending data for its New Build Boost mortgage scheme.
New Build Boost is designed to help people with small deposits buy a new build home. Homebuyers bring a 5% deposit, Gen H provides an 80% mortgage, and a 15% interest-free boost, supported by the builder, closes the gap.
This boost is frozen for five years, then steps up or down in line with property value. The boost’s repayment value is capped at 2x the initial amount borrowed and is interest-free forever.
Of New Build Boost cases to date, 88% of buyers are first-time buyers, 63% are families, 43% of applicants are foreign nationals, and 31% of applicants work in the healthcare field.
The average home price is £319,300 and the average boost value is £47,903.
Many New Build Boost mortgages have already completed, and Gen H has already approved in principle over £90m of lending.
Gen H plans to expand New Build Boost's reach in the coming months, welcoming new builders on board and developing scheme variations designed to support more buyers. In the meantime, Persimmon has expanded New Build Boost to all of its available own-brand and Charles Church sites in England.
Pete Dockar, chief commercial officer at Gen H, said: "When we launched New Build Boost, we set out to tackle the deep-rooted affordability challenges in the UK new build housing market. These initial statistics are incredibly encouraging and speak volumes about the scheme's effectiveness. We're particularly proud to see that New Build Boost is empowering diverse groups, including a significant proportion of foreign nationals, who have historically faced disproportionate barriers to homeownership. This success highlights how collaboration between lenders and housebuilders can genuinely make homeownership more inclusive."
