Mortgage Advice Bureau New Homes has teamed up with Generation Home in an attempt to minimise market disruption as ‘Help to Buy’ scheme winds down.
The new partnership will offer an alternative for both first-time buyers and developers as the government-funded scheme nears its ends. Help to Buy, which offers first time buyers a 20% interest-free equity loan for the first five years of their mortgage, is set to close in March 2023.
Helping to launch its product portfolio through a small pilot scheme involving around 40 advisers, MAB was the first mortgage intermediary to secure access to Generation Home’s product range, and the first network to go live across its distribution.
In just over 12 months, the mortgage provider has introduced features including a ‘deposit booster’ that allows friends and relatives to invest in a property alongside the homeowner – upfront and interest free. It also offers an ‘income booster’ feature, which supports affordability by making it possible to add immediate family members to a mortgage.
Generation Home’s product portfolio will now be accessible through MAB New Homes’ specialist brokers.
Mobeen Akram, new homes account director at MAB New Homes, said: “Since 2013, buyers of new homes have been able to benefit from the hugely popular Help to Buy equity loan schemes. As the government prepares to exit the scheme in 2023, it is encouraging to see the industry working with the private sector to offer alternative ways that buyers with low deposits or limited income can still achieve home ownership.
“MAB are at the forefront of bringing these various initiatives to market, and our partnership with Generation Home perfectly complements our proactive strategy to engage with new and innovative solutions to support first time buyers and builders.”
Will Rice, founder and CEO at Generation Home, added: “The Help to Buy scheme has shown that first-time buyers are an underserved segment of the mortgage market. With the scheme coming to an end, it is important to provide additional support and alternative solutions. There is a huge untapped market of people with non-traditional funding arrangements, and we are proud to be serving that demographic with a unique solution.”