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The New Hope for UK Homebuyers: Introducing New Build Boost
In a significant move to address the ongoing housing crisis in the UK, residential mortgage lender Gen H has launched the New Build Boost scheme. This innovative mortgage option specifically caters to homebuyers with low deposits and no familial financial support, filling the gap left by the previous Help to Buy program. Since the termination of Help to Buy, an alarming 30,000 households each year have been deprived of new build homeownership, underscoring the pressing need for accessible solutions for average-income families.
A Closer Look at the Mortgage Mechanics
The New Build Boost scheme is structured to enhance affordability while simplifying the application process. Here’s how it works: prospective buyers contribute a minimum deposit of 5%, while Gen H provides an 80% Loan-to-Value (LTV) mortgage. The remaining 15% is covered by an interest-free "boost" loan supported by house builders, allowing buyers greater purchasing power. Unlike Help to Buy, this scheme features borrower-friendly modifications, such as the ability to repay the boost at its face value within the first 5 years, with future repayments based on market value changes.
Supporting Families on Their Homeownership Journey
Gen H’s CEO, Will Rice, emphasized that the overarching goal of the New Build Boost is to open doors for first-time buyers and those without family assistance. By enabling such buyers to secure homes, the scheme also encourages home builders to increase their output, fostering a positive feedback loop in the housing market. In partnership with Persimmon Homes, over 120 sites across England will be available to those looking to utilize this new opportunity.
How New Build Boost Stands Out
One of the standout features of New Build Boost is its user-friendly approach. Unlike the Help to Buy scheme which was complicated by its structure, New Build Boost allows homeowners to manage all aspects of their mortgage through a single online account, making it easier to keep track of repayments and property valuations. This simplification is expected to attract a broader range of potential buyers, making the path to homeownership smoother than ever.
What This Means for the Property Market
As the pressures on the UK housing market continue to mount, initiatives like New Build Boost represent a proactive step in addressing these challenges. With corresponding support from builders and lenders alike, it signals a shift towards more innovative mortgage products designed to meet the needs of modern society. With the scheme officially launched, there's renewed hope for thousands of families aiming to become homeowners.
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