Perenna Bank has announced a new strategic funding relationship with residential mortgage lender Gen H, marking a significant private sector intervention aimed at easing access to homeownership for first-time buyers and home movers.
The arrangement will see Perenna provide forward flow funding for Gen H’s recently launched product, New Build Boost – a scheme designed to bridge the gap left by Help to Buy. Targeting those with small deposits and no family financial support, New Build Boost is the first private sector alternative of its kind to enter the UK housing market, post-Help to Buy.
The structure of the scheme enables buyers to purchase a new home with just a 5% deposit. Gen H supplies an 80% loan-to-value mortgage, while the remaining 15% is covered by an interest-free equity loan from Gen H, with backing from the housebuilder. Persimmon, one of the country’s largest developers, is the exclusive launch partner.
Perenna’s funding will support Gen H in delivering the 80% mortgage component of the scheme, underpinned by Perenna’s distinctive long-term funding model. The partnership reflects both lenders’ commitment to delivering innovative financial solutions for those who have been locked out of the housing market by conventional lending practices.
MISSION
Colin Bell, founder and chief operating officer at Perenna, said the partnership underlined the firm’s mission to broaden access to homeownership: “We are committed to creating a nation of happy homeowners, whether through our long-term fixed rate mortgage proposition, or helping fund wider innovation for hard-to-fix problems with our unique funding model.
“Whether it’s a high-LTV mortgage, interest-free boost loans, or any other type of innovative products, it is absolutely critical that we provide consumers with a range of options to get onto the ladder. We’re proud to work with Gen H and Persimmon to help bring about positive change in the sector, and help fill the hole left by the withdrawal of Help To Buy.”
Will Rice, chief executive of Gen H, welcomed Perenna’s involvement: “We have long believed that the private sector has a critical role to play in resolving the housing crisis. We’re working tirelessly to launch new products that will help unlock homeownership for everyone, but we cannot create seismic, lasting change on our own.
“It’s for this reason we’re so pleased to welcome Perenna as one of our funders as we roll out this important new mortgage scheme.
“Our relationship not only enables access to homeownership for real people; it highlights a growing bias to action and innovation within our industry – one that could bring about real change. We hope more partners will follow in Perenna’s footsteps, and we’re delighted to be working together.”
