Gen H targets first-time buyers with New Build Boost; more2life offers flexible interest options for over-55s
Residential mortgage lender Gen H has launched New Build Boost, a scheme designed to support first-time buyers with small deposits, while later life lender more2life has introduced Tailored Interest Reward, a flexible lifetime mortgage product.
Gen H’s New Build Boost is the first scheme since Help to Buy to assist buyers who have limited savings and no access to family financial support, it claimed. The lender highlighted that since Help to Buy ended, around 30,000 fewer households have been able to purchase new-build homes each year.
The scheme requires buyers to contribute a minimum 5% deposit, take out an 80% loan-to-value (LTV) mortgage with Gen H, and receive a 15% interest-free equity loan from the house builder. Unlike Help to Buy, the equity loan remains interest-free for its full term and can be repaid at face value within the first five years. The amount owed is capped at twice the original loan to protect borrowers from significant house price increases.
Gen H has partnered with Persimmon Homes for an initial rollout across 120 sites in England and is inviting other housebuilders and lenders to join the scheme.
“We have designed New Build Boost to open up homeownership to a wider audience – especially those who are not fortunate enough to have access to family support – while also giving home builders the confidence to ramp up the delivery of new homes to market,” said Will Rice (pictured left), founder and chief executive of Gen H.
Meanwhile, more2life has introduced Tailored Interest Reward, a later life mortgage designed to give borrowers greater control over their interest payments. Available on both lump sum and drawdown options, the product offers interest rate discounts of up to 0.65% when borrowers commit to making part-interest payments of at least 25.01% of the accruing interest.
The product has multiple segments, from C3 to C8, with maximum LTVs ranging from 38% to 58.4% and discounts from 0.3% to 0.65%. Customers choose how long they wish to make payments, securing the interest discount for that period. When payments stop, the rate reverts to the non-discounted level.
“Much like with our most recent launches, such as last month’s Flexi Interest Reward feature, our focus is on offering products that fit the client’s affordability, their wants and needs, plus their ability to continue making payments now and into the future,” said Dave Harris (pictured right), chief executive of more2life.
“With such options growing in number, and with more over-55s being suitable for these products, it’s absolutely imperative advisers not only conduct their affordability assessments, but that they have full access to all later life lending products available, both mainstream options and lifetime mortgages.”
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