Buyers can benefit from a 5% deposit at our housing development at landmark pub spot
With work underway to transform land that once housed a fire-hit pub, a new 5% deposit scheme has been announced for its new homes.
Whitburn Lodge had become an eyesore on the coast road after being majorly damaged by fire since it closed as pub in 2012.
Now, after Houghton-based Lovell acquired the site, work has started on the construction of 32 new homes on the land in South Tyneside.
Plans by Lovell to redevelop the former pub site on Mill Lane and build new homes will deliver eight affordable homes and £42,000 in funding for biodiversity measures.
The development will be called Laurel Gate and Lovell is to build a collection of two, three and four-bedroom houses, which will have PV solar panels and electric vehicle charging points.
As part of the affordable homes, mortgage lender Gen H has introduced its New Build Boost scheme on at Laurel Gate.
How it works
The scheme enables buyers to purchase a new-build property with a standard 80 per cent mortgage plus a 15 per cent boost, meaning they only need a five per cent deposit.
The 15 per cent boost is an equity loan that is frozen for five years and is interest free.
Buyers can start paying off the boost after the first year of their mortgage.
At the five-year mark, the value of the boost will go up or down to reflect any change in the property’s value since it was bought, with any increase capped at two times the amount borrowed.
Rebecca Darby, Head of Sales for Lovell in the North East, said: “We are very pleased to partner with Gen H on the New Build Boost scheme at Laurel Gate and Edward’s Birch (in Morpeth).
“By allowing buyers to purchase with a five per cent deposit and 80 per cent mortgage, the scheme will open up the opportunity of homeownership to more people in the area.”
Applications for the New Build Boost scheme must go through a mortgage broker. To find out more about how it works, visit the Gen H website.