Mortgage Advice Bureau New Homes has joined forces with Generation Home to minimise market disruption as ‘Help to Buy’ scheme winds down.
The new partnership will offer a timely ‘DIY’ alternative for both first-time buyers and developers as the government-funded scheme nears its end.
Launched and FCA licensed in September 2020, Generation Home has filled a market niche for a new wave of first-time buyers – and MAB has been at the forefront of its engagement with the market.
Helping to launch its product portfolio through a small pilot scheme involving c40 advisers, MAB was the first mortgage intermediary to secure access to Generation Home’s product range, and the first network to go live across its distribution.
Now, in light of the government’s decision to end its ‘Help to Buy’ scheme, Generation Home’s inclusive approach to mortgages – coupled with MAB’s industry-leading network and expertise – will help to bridge the looming financial gap between young purchasers and newbuild properties.
In just over 12 months, the mortgage provider has brought several features to market, including a ‘deposit booster’ that allows friends and relatives to invest in a property alongside the homeowner – upfront and interest free. It also offers an ‘income booster’ feature, which supports affordability by making it possible to add immediate family members to a mortgage.
Generation Home’s product portfolio will now be accessible through MAB New Homes specialist brokers. This will help more first-time buyers onto the property ladder, provide better ways for families to lend a hand, and restore confidence for UK builders – paving the way for the next generation of inclusive lending.
The new partnership also forms part of MAB’s strategy to be at the forefront of all new market innovations, strengthening its position to help more buyers into homeownership through strategic partnerships, including First Homes Scheme and Deposit Unlock earlier this year.
Mobeen Akram, new homes account director at MAB New Homes, said: “Since 2013, buyers of new homes have been able to benefit from the hugely popular Help to Buy equity loan schemes. As the government prepares to exit the scheme in 2023, it is encouraging to see the industry working with the private sector to offer alternative ways that buyers with low deposits or limited income can still achieve home ownership.
“MAB are at the forefront of bringing these various initiatives to market, and our partnership with Generation Home perfectly complements our proactive strategy to engage with new and innovative solutions to support first time buyers and builders.”
Will Rice, Founder and CEO at Generation Home, added: “The Help to Buy scheme has shown that first-time buyers are an underserved segment of the mortgage market.
“With the scheme coming to an end, it is important to provide additional support and alternative solutions. There is a huge untapped market of people with non-traditional funding arrangements, and we are proud to be serving that demographic with a unique solution.”
The government’s ‘Help to Buy’ scheme, which offers first-time buyers a 20% interest-free equity loan for the first five years of their mortgage, is set to close in March 2023.
