Perenna Bank has agreed a funding relationship with residential mortgage lender Gen H to support Gen H’s New Build Boost mortgage scheme.
New Build Boost is aimed at first-time buyers (FTBs) and home movers with small deposits who do not have family support.
Under this scheme, the buyer provides a 5% deposit.
Gen H offers an 80% loan-to-value (LTV) mortgage and the builder funds the remaining 15% through an interest-free loan, with Persimmon as Gen H’s launch partner.
Perenna will use its funding model to provide the financial backing for the 80% mortgage part of New Build Boost.
This relationship will allow Gen H to reach buyers who are not being served by mainstream lenders.
Colin Bell, founder and chief operating officer at Perenna, said: “We are committed to creating a nation of happy homeowners, whether through our long-term fixed rate mortgage proposition, or helping fund wider innovation for hard-to-fix problems with our unique funding model.
“Whether it’s a high-LTV mortgage, interest-free boost loans, or any other type of innovative products, it is absolutely critical that we provide consumers with a range of options to get onto the ladder.
“We’re proud to work with Gen H and Persimmon to help bring about positive change in the sector, and help fill the hole left by the withdrawal of Help To Buy.”
Will Rice, chief executive at Gen H, said: “We have long believed that the private sector has a critical role to play in resolving the housing crisis.
“We’re working tirelessly to launch new products that will help unlock homeownership for everyone, but we cannot create seismic, lasting change on our own.
“It’s for this reason we’re so pleased to welcome Perenna as one of our funders as we roll out this important new mortgage scheme.”
Rice added: “Our relationship not only enables access to homeownership for real people; it highlights a growing bias to action and innovation within our industry – one that could bring about real change.
“We hope more partners will follow in Perenna’s footsteps, and we’re delighted to be working together.”
