Perenna Bank has announced a new funding relationship with residential mortgage lender Gen H. Perenna will provide forward flow funding for Gen H’s new mortgage scheme, New Build Boost.
New Build Boost has been designed as a private sector equivalent of Help to Buy, helping first-time buyers and home movers find their place on the property ladder. It targets buyers with small deposits and no access to family help, and is the first private sector scheme of its kind to be brought to market.
Under the scheme, the buyer provides a 5% deposit, Gen H provides an 80% LTV mortgage, and the remaining 15% is funded by an interest-free loan from Gen H that is supported by the builder of the home being purchased. Gen H’s exclusive launch partner is Persimmon.
Perenna will leverage its funding model to provide necessary financial backing, enabling Gen H to provide the 80% LTV mortgage component of the scheme.
Colin Bell, founder and COO of Perenna, commented: “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, CEO of Gen H, added: “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.”
