New Build Boost vs. Help to Buy: What's the Difference?

From 2013 to 2023, the government-backed Help to Buy equity loan scheme was a cornerstone for first-time buyers, helping 387,195 purchase new-build properties with a smaller deposit.

However, with its closure in England in 2023, buyers are now left wondering what alternatives exist to support their homeownership aspirations.

Enter the New Build Boost scheme, a private sector initiative stepping in to offer similar support, particularly for those eyeing a new-build home.

But how does this new offering stack up against its predecessor, and what are the key differences you need to know?

New Build Boost vs Help to Buy: A direct comparison

Introducing New Build Boost

The New Build Boost is a private sector initiative launched by mortgage lender Generation Home (Gen H). This scheme is specifically designed to support buyers of new-build properties with a lower deposit, aiming to address current affordability challenges in the housing market.

Unlike the Help to Buy scheme, New Build Boost offers a 15% interest-free equity loan for the entire mortgage term, which is a major advantage.

Furthermore, it includes a protective mechanism: while the loan's value adjusts with your property's value after five years, the amount you'll ever have to repay is capped at twice the original loan amount, providing greater financial certainty.

For a complete guide to the New Build Boost scheme, including detailed eligibility, its unique interest-free nature, and how it compares in practice, read our article on 'What is the New Build Boost Scheme?'

Do You Need an Online Conveyancing Quote?

Trustpilot

• Expert panel of conveyancing solicitors, with local knowledge.
• Your transaction is protected by our No Sale, No Fee policy. Terms apply.
• Fixed fee conveyancing.
• We are on 99% of mortgage lender panels.
• We can solve any property challenge.

Get a Conveyancing Quote

A deeper dive into the differences between New Build Boost and Help to Buy

Both schemes aimed to support new build homeownership with a lower deposit. The New Build Boost introduces several changes and potentially improved features compared to the Help to Buy Equity Loan.

The interest-free period

• The most impactful difference lies in the longevity of the interest-free period. Help to Buy offered five years of free interest on the equity loan, but after this, homeowners faced escalating interest charges that could lead to "payment shock."
• New Build Boost, however, eliminates this future uncertainty. Its 15% equity loan remains interest-free for the entire term of your mortgage, providing long-term financial predictability and relief from interest debt on that portion.

Equity repayment

• Under the Help to Buy scheme, your equity loan repayment was directly proportional to your home's value at the time of sale or repayment. This meant if your property doubled in value, you'd repay twice the original loan amount, with no upper limit.
• New Build Boost introduces a protective element: the 15% boost is fixed at its original value for the first five years, offering a window where only the initial borrowed amount is due. Beyond this, while the loan's value does adjust with market fluctuations, a cap of twice the original loan amount ensures homeowners are protected from excessive repayment burdens, regardless of how much their property value may increase.

Expanded Eligibility

• A significant limitation of the Help to Buy scheme in England was its restriction to first-time buyers only, excluding existing homeowners from leveraging the equity loan for a new build move.
• New Build Boost broadens the accessibility, welcoming both first-time buyers and home movers. This inclusive approach widens the pool of new build purchasers seeking deposit assistance.

Provider and developer scope

• Help to Buy benefited from government backing, leading to an ecosystem of participating mortgage lenders and registered housebuilders across England, so buyers had a broad choice of properties.
• New Build Boost currently operates with a more centralised model. The entire mortgage and equity loan package is provided exclusively by Generation Home and is initially tied to new builds from Persimmon Homes and Charles Church. While this offers a streamlined application, it naturally limits property and lender choice compared to the former government scheme.

Is New Build Boost right for you?

Given that the Help to Buy Equity Loan scheme is no longer available for new applications, the primary question for homebuyers today isn't a direct choice between the two. Instead, it's about whether the New Build Boost scheme, or other available alternatives, align with your current circumstances.

Why New Build Boost might be your ideal option now

If you previously considered Help to Buy, the New Build Boost scheme offers a compelling and actively available solution, particularly if:

• You are either a first-time buyer or an existing homeowner actively looking for a new build property.
• You have a minimum 5% deposit saved and are seeking a scheme to bridge the affordability gap.
• You are interested in new build homes from Persimmon Homes or Charles Church (currently the exclusive developer partners for the scheme, though more may join).
• The prospect of an interest-free equity loan for the entire mortgage term and a reassuring repayment cap appeals to your desire for long-term financial stability and protection against increases in repayment.
• You are comfortable with a streamlined application process by securing both your mortgage and the equity boost directly through Generation Home.

Get a Great Mortgage Deal for Your Circumstances

Our brokers will present the best options available to you, for any type of mortgage, including:

• First-time buyers, home movers and buy-to-lets;
• Employed; self-employed or director mortages;
• Mortgages for non-UK residents or non-UK citizens;
• Bridging loans;
• Bad credit mortgages;
• Guarantor mortgages;
• Joint borrower, sole proprietor mortgages; and
• Absolute, Possessory, Good, or Qualified Title.

Get a Broker Consultation