What is New Build Boost?
New Build Boost is a mortgage scheme launched by Gen H to help homebuyers with a minimal deposit buy a new-build home. The scheme combines a traditional mortgage with an interest-free equity loan, allowing the buyer to access 80% loan-to-value (LTV) mortgages with a smaller deposit.
In a nutshell:
New Build Boost by Gen H provides an 80% LTV mortgage with a 15% equity loan, with buyers needing just a 5% deposit
The equity loan is interest-free for the whole mortgage term duration
For the first five years, the equity loan's value is fixed, then it adjusts in line with the market value, capping the repayments at twice the original loan amount
New Build Boost enables buyers to own the entire property, unlike other schemes
Search New Build Boost properties.
Who's eligible for New Build Boost?
To be eligible for the Gen H scheme, buyers must:
Be first-time buyers or a homeowner looking to buy a new-build home from Persimmon or Charles Church
Have a 5-15% deposit - which can be savings, or gifted
It's also worth noting that New Build Boost is not available in Scotland or Wales.
How does New Build Boost compare to Help to Buy?
Whilst New Build Boost is modelled on the Help to Buy scheme, there are some differences.
New Build Boost isn't just for first-time buyers, but it opens up to existing homeowners looking to buy a new build - differing from Help to Buy, where only first-time buyers could use the scheme
The 15% equity loan is interest-free for the full mortgage term - differentiating it from the previous Help to Buy scheme where the equity loan was interest-free for the first five years
With both schemes, equity loan repayments are based on the changing market value of the property - but with New Build Boost, the equity loan's value is fixed for the first five years
New Build Boost has a simplified process for application, allowing homebuyers to apply for the mortgage and equity loan in one
| New Build Boost | Help to Buy | |
|---|---|---|
| Boost in the form of an equity loan | ✅ | ✅ |
| Own the whole home from day 1 | ✅ | ✅ |
| Standard 80% LTV criteria | ✅ | ✅ |
| Available to first-time buyers and movers | ✅ | ❌ |
| Interest-free forever | ✅ | ❌ Only 5 years |
| Equity frozen for first 5 years | ✅ | ❌ |
| Equity payback capped at 2x | ✅ | ❌ |
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Why is this a big deal?
The end of the Help to Buy scheme has changed the landscape for buying new-build properties. Gen H's introduction of the New Build Boost scheme suggests an attempt to provide an alternative for buyers who might have previously relied on that scheme, focusing on addressing key challenges, such as deposit requirements and affordability.
Are buying schemes for everyone?
Buying schemes help buyers who want to access home ownership but don't have the size of deposit or income to buy using a standard mortgage. Typically the monthly costs are higher than a standard mortgage and for schemes that involve buying a leasehold property, like shared ownership, then there are other costs to consider.
Whether it is right for you depends upon your individual needs and circumstances. Make sure you assess the benefits with your estate agent or mortgage broker.
What should you do if you're interested?
If you're interested in purchasing a new-build property and saving for a deposit is a concern, we'd advise discussing the Gen H New Build Boost with a mortgage advisor. They can provide personalised guidance based on your financial situation and assess whether this new range could be a suitable option for your home-buying plans.
You can find more information on Gen H's New Build Boost scheme on their website.
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