Gen H has announced a rate reduction on its New Build Boost mortgage product, cutting the rate from 6.29% to 5.95% in a move aimed at expanding affordability for first-time buyers.

According to the lender, 94% of applicants to date have been first-time buyers, with ages ranging from 19 to 52.

The New Build Boost product allows buyers to put down just a 5% deposit, take out an 80% mortgage with Gen H, and access a further 15% interest-free equity loan – frozen for five years – to bridge the gap.

The structure means customers only pay interest on the main 80% mortgage, reducing monthly outgoings and improving affordability compared to many high loan-to-value deals.

In comparative terms, the lender estimates that a borrower purchasing a £300,000 home with a 5% deposit would pay £1,431 per month under the New Build Boost scheme, assuming a 30-year term.

That compares to £1,492 per month on the best available 95% LTV mortgage at 4.78%, and £1,352 per month on a 90% LTV product at 4.40%, assuming the deposit is gifted by the builder.

Despite the slightly higher cost compared to a 90% LTV mortgage, Gen H points out that the New Build Boost structure gives borrowers over 12% more purchasing power – an important consideration in today’s constrained market.

Pete Dockar, chief commercial officer at Gen H, said: “The feedback we’ve been getting from New Build Boost brokers was overwhelmingly positive, but it came with an ask: make the New Build Boost rate begin with a ‘5’!

 “I’m delighted that we’ve found a way to make it work, and am excited to see more New Build Boost homeowners join our books.

 “The scheme supports people with no other path onto the property ladder, so every single completion is a huge win for our mission-driven team.”

The updated rate is now live on Gen H Pro and available to New Build Boost brokers.