Gen H launched New Build Boost in March this year, saying at the time that it would be an alternative to Help to Buy.
The scheme aims to help people with smaller deposits buy a new-build home. Borrowers can bring a 5% deposit and Gen H offers an 80% mortgage and a 15% interest-free boost, supported by the builder, which “closes the gap”.
The interest-free aspect is frozen for five years and then increases or decreases in line with the property value.
The repayment value is capped at twice the initial amount borrowers and is interest-free forever.
Gen H said that of the borrowers it had helped so far, in many cases, applicants may not have been able to access homeownership without the deal.
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It noted that 88% of buyers were first-time buyers, 63% were families and 43% were foreign nationals.
The lender added that nearly a third worked in the healthcare field.
The average home price on the deal is £319,300, while the average boost value was capped at £47,903.
The firm said it planned to widen the New Build Boost proposition in the coming months, with new builders coming on board and “scheme variations” to “support more buyers”.
Gen H added that Persimmon had 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.”
