Generation H revealed that it has approved a £90 million loan with its new product enhancement product within six months since its launch in March.
Mortgages are designed to help borrowers with only 5% deposits by providing 15% interest-free equity loans and 80% mortgages supported by home builders.
Stock loans remain frozen for the first five years, so if the borrower clears the debt at the end of this period, they will only repay the amount borrowed.
If the borrower does not repay the stock loan at this time, it will increase or decrease proportionally to the value of the property, but is limited to 2 times, and the initial sum will remain interest-free forever.
Generation H said its new building lift program has proven to be popular among foreign nationals, who account for 43% of applicants and health care workers.
The lender said the average equity loan “uplifted” to £47,000.
So far, 88% of applicants are first-time home buyers and 63% are households.
Generation H hopes new home builders join the program in the coming months and plans to update to support more buyers.
Persimmons are now offering new architectural enhancements to all brands in England and Charles Church.
Pete Dockar, Chief Business Officer for Generation H, said: “When we launch the new Build Boost, we set out to address the deep affordability challenges in the UK’s new building market.
“These initial statistics are incredibly encouraging and talk about the effectiveness of the program.
“We are proud to see that new building enhancements are strengthening a variety of groups, including a considerable number of foreign nationals, who have historically encountered disproportionate barriers to home ownership.
“This success highlights how the collaboration between lenders and homebuilders can really make homes more inclusive.”
