New Build Boost offers 5% deposit for first-time buyers

A new mortgage scheme has been introduced for first-time home buyers who can manage a 5% deposit. The New Build Boost scheme, launched by Generation H, aims to help those with low savings enter the housing market. With this scheme, buyers provide a 5% deposit and receive a mortgage covering 80% of the home’s value. Generation H then adds a 15% equity loan, which the buyer must repay. This loan is interest-free for the entire mortgage term, but after five years, its value may change based on the property's market price. The offer is valid for homes from Persimmon across 130 locations in England. Generation H claims their scheme continues the work of the now-closed Help to Buy program, which charged interest on its equity loans after five years. Experts highlight the scheme's benefits, such as low deposit requirements, simplifying the application process, and no interest on the equity loan for the loan's duration. However, there are downsides. The fixed mortgage rate of 6.49% is higher than the market average of 5.18%. Additionally, the scheme is limited to new-build properties, which can be more expensive than older homes. Potential borrowers are advised to seek guidance from a mortgage broker, as they can provide insights on the best mortgage options. Interested applicants can find more information on the Generation H website.