Gen H has launched New Build Boost, a mortgage scheme aimed at helping buyers with small deposits lacking family financial support.
The scheme consists of three components: a minimum 5% deposit from the buyer, an 80% loan-to-value (LTV) mortgage from Gen H, and a 15% interest-free boost filled by the house builder.
This setup mirrors the previous Help to Buy structure but offers more borrower-friendly terms, including interest-free terms for the mortgage’s duration.
Borrowers can repay the boost at its original value within the first five years, with adjustments for property value changes occurring after this period.
The repayment is capped at twice the original amount, protecting buyers from significant house price growth.
New Build Boost offers a streamlined experience with one application and a single online account for managing finances.
Initially, the scheme will be available through launch partners Persimmon, with over 120 participating sites across England.
Gen H plans to expand the scheme, inviting other house builders and lenders to participate.
Will Rice, founder and CEO of Gen H, said: “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.”
Rice added: “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.”
Sonia Da Costa, chief customer experience officer at Persimmon Homes, said: “Given the ongoing challenge of affordability for many young families in particular, we are always looking for ways we can help make the dream of home ownership more accessible.
“We are delighted therefore to partner with Gen H to offer this opportunity to potential buyers, supporting them on their journey to new home ownership.”
Oliver Peace, founder and managing director of James Leighton Financial Services, said: “Gen H’s New Build Boost is a standout example of mortgage market innovation.
“Many potential buyers face two major barriers: insufficient borrowing power and a lack of deposit.
“Since the closure of Help to Buy Shared Equity in October 2022, no other product has addressed both challenges at the same time—until now.”
Peace added: “By enhancing affordability, this product will help many buyers who previously struggled to secure the home they need.
“While lending remains subject to Gen H’s policies, credit status, and overall suitability, this could provide a valuable new route to homeownership for first-time buyers and home movers alike.”
