Gen H has reported strong early results for its New Build Boost mortgage scheme, launched in March, which is designed to help buyers with small deposits purchase new-build homes.
The product combines a 5% buyer deposit with an 80% mortgage and a 15% interest-free “boost” provided in collaboration with housebuilders.
The boost, which is fixed for five years and then adjusts in line with property value, is capped at twice the original sum borrowed and remains interest-free indefinitely.
Gen H said the scheme was conceived as a replacement for Help to Buy, aiming to address affordability challenges in the new-build market.
To date, 88% of buyers using the scheme have been first-time buyers, with 63% families and 43% foreign nationals. Nearly one-third of applicants work in the healthcare sector.
The average home price purchased under the scheme has been £319,300, with an average boost of £47,903. Gen H confirmed it has already approved more than £90m in principle and many transactions have completed.
Persimmon has extended its participation to all its own-brand and Charles Church developments in England following the scheme’s early success.
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.”
