Intermediary-only lender Perenna Bank has partnered with residential mortgage lender Gen H in a new funding deal.

The alliance sees Perenna, which specialises in long-term fixed rate mortgages, provide forward flow funding for Gen H’s newly launched scheme, New Build Boost.

The scheme 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.

It is the first private sector scheme of its kind to be brought to market and sees a buyer provide 5% deposit, the lender offer 80% LTV and the remaining 15% funded by an interest-free loan from Gen H, supported by the builder of the home being purchased.

Gen H has exclusively partnered with house builder Persimmon on the scheme. 

Perenna will leverage its funding model to provide necessary financial backing for the 80% LTV component of the project enabling Gen H to provide the 80% LTV mortgage component of the scheme.

Perenna founder and chief operating officer Colin Bell says: “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.”

Gen H chief executive Will Rice says: “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.”